Econ 101 Chapter 15-16 tophat
3,000; $70
The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, Paul produces ________ pillows per hour, and charges a price of ____ per pillow.
4 and 5
The table above gives the demand for a monopolist's output. Between which two quantities is marginal revenue equal to 0?
both b & c
A monopoly a. is not protected by barriers to entry b. produces a good with no close substitues c. faces a downward-sloping demand curve d. all of the above e. both b & c
with no close substitutes; are
A monopoly produces a product ________ and there ________ barriers to entry into the market.
one firm can supply an entire market at a lower average total cost than can two or more firms
A natural monopoly exists when
sells a product that has perfect substitutes
A perfectly competitive firm
$34
A single-price monopoly can sell 10 units of its product at a price of $45 each but to sell 11 units, the monopoly must cut the price to $44. What is the marginal revenue of the extra unit sold?
$18
Suppose a single-price monopoly sells 3 units of a good at $20 per unit. If the monopoly sells 4 units, the total revenue increases to $78. What is the marginal revenue of the fourth unit?
produce more than 30 units and less than 40 units
The above figure illustrates a perfectly competitive firm. If the market price is $25 a unit, to maximize its profit (or minimize its loss) the firm should
produce 40 units
The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should
will stay open to produce and will incur an economic loss
The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm
$165
The above figure shows a perfectly competitive firm. If the market price is $15, the firm incurs an economic profit/loss equal to:
will stay open to produce and will make zero economic profit
The above figure shows a perfectly competitive firm. If the market price is $20 per unit, the firm
$680
The above figure shows a perfectly competitive firm. If the market price is $40, the firm incurs an economic profit/loss equal to:
firms enter and the market price declines
The above figure shows a perfectly competitive firm. If the market price is $40, we expect the following to happen in the long run:
it will shutdown in the short run and incur a loss equal to its fixed costs.
The above figure shows a perfectly competitive firm. If the market price is $5, the firm incurs an economic profit/loss equal to:
firms exit and the market price increases
The above figure shows a perfectly competitive firm. If the market price is $5, we expect the following to happen in the long run
will stay open to produce and will make an economic profit
The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm
5
The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. Omar's total profit is maximized when he produces ________ bushels of rutabagas.
-$8
The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. When Omar produces 2 bushels of rutabagas, his total profit equals
abf; ace
The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________.
bcd
The deadweight loss when the market has a monopoly producer is
$6 and $4
The table gives the demand schedule for a monopoly. The demand is elastic at all prices between
what quantity of output to produce.
To maximize its profit, in the short run a perfectly competitive firm decides
1,200; $3,600
Use the figure above to answer this question. If the firm is maximizing profit, it will produce ________ units and make an economic profit of ________.
1,000 units will be produced and there is no deadweight loss
Use the figure above to answer this question. If the market was perfectly competitive
$40; $40
Use the figure above to answer this question. Pam gives the only piano lessons in town. In order to maximize profit, Pam should charge ________ per lesson and will earn a total economic profit of ________.
4; $50; maximize profit
Use the figure to answer this question. Mary is the only veterinarian in a small town. To maximize her profit, Mary will choose to treat ________ animals per hour and charge ________ per customer in order to ________.
a smaller; a higher
When compared to a perfectly competitive market, a single-price monopoly with the same costs produces ________ output and charges ________ price.
$8; $12
When the market is perfectly competitive, the price of a pound of steak is ________ and when it is a monopoly, the price of a pound of steak is ________.
$18 each
Suppose a single-price monopoly sells 3 units of a good at $20 per unit. If the monopoly sells 4 units, the total revenue increases to $72. What price is being charged for 4 units?
$2,800
Computer memory chips are produced on wafers, each wafer having many separate chips that are separated and sold. The above table shows costs for a perfectly competitive producer of computer memory chips. Assuming identical firms in the market place, we expect the long-run market price of a wafer to be:
is able to sell different units of a good at different prices
Price discrimination occurs when a firm
enter; supply curve shifts rightward
If firms in a perfectly competitive market are incurring economic profits, then as time passes firms ________ and the market ________.
20; $3.00
In order to maximize profit, the Busy Bee produces ________ hamburgers per hour and sets a price of ________ per hamburger.
legal barrier to entry and allows; greater than marginal cost
Mylan Pharmaceuticals holds a patent on the EpiPen - designed to inject epinephrine into shock victims. In 2016, Mylan received criticism for charging $600 for this life-saving drug. Mylan's patent is a ________ Mylan to charge a price ________.