Monopoly PQ

(T/F) In both perfect competition and monopoly, the marginal revenue curve is always equal to the demand curve.

False

(T/F) Productive efficiency implies production at a quantity where MC=MR.

False

Which of the following are characteristics of a monopoly? small barriers to entry homogeneous products substantial control over the market numerous sellers

substantial control over the market

(T/F) In a monopoly, the firm's demand curve would be below the market demand curve.

False

(T/F) A higher price by itself is a negative consequence of a monopoly.

False

(T/F) If the government broke up a natural monopoly into several smaller companies, the increased competition would lead to lower prices for consumers.

False

Which of the following would be an example of a monopoly? Dairy Queen The Gap Georgia Power Verizon Wireless

Georgia Power

In order to maximize profit, a firm operating as a monopoly will produce a quantity at which MR=MC MR=ATC D=ATC D=MC both A and D above

MR=MC

Which of the following is true with respect to the demand curve for a monopolistic firm? -The firm's demand curve is perfectly inelastic because consumers have no other options. -The firm's demand curve is equal to the market demand curve because consumers have no other options. -The firm's demand curve is perfectly elastic because consumers have no other options. -none of the above

The firm's demand curve is equal to the market demand curve because consumers have no other options.

(T/F) Allocative efficiency implies production at a quantity where MC=D.

True

Which of the following are necessary in order for price discrimination to occur? a downward sloping demand curve one homogeneous group of customers no ability to prevent resale between customers operating in a monopoly both A and D above

a downward sloping demand curve

Which of the following are characteristics of a monopoly? several sellers a unique good small barriers to entry limited control over the market

a unique good

Which of the following are examples of price discrimination? senior citizen discounts student pricing on movie tickets airline tickets college tuition all of the above

all of the above

Which of the following are negative results of a monopoly? allocative inefficiency productive inefficiency limited options for consumers potential for limits on technological advancement all of the above

all of the above

Which of the following distinguishes a natural monopoly from other types of monopolies? one seller large barriers to entry a unique good total control of the market none of the above

none of the above