ECON_Ch11
The monopolist's demand curve slopes downward because:
. the monopolist is a price maker in the market
Refer to Table 11-1. The firm earns the maximum total revenue when it produces _____ units.
5
The marginal revenue curve of a monopolist:
is downward-sloping
The shape of the monopolist's demand curve indicates that:
. price and output are inversely related for the firm.
The marginal revenue curve of a monopolist lies below the demand curve because:
. the monopolist must lower price on all units sold in order to sell additional units.
Refer to Table 11-1. If the marginal cost of producing each unit is $30, what is the firm's profit-maximizing level of output?
4
Which of the following is true of a monopolist?
A monopolist can choose to produce at any price along the market demand curve.
Refer to Figure 11-3. The profit of the monopolist is shown by the area _____.
AFGB
Refer to Figure 11-2. The profit earned by the monopolist is given by the area _____.
AFHB
Which of the following is true of the demand curve that a monopolist faces?
It is the same as the market demand curve.
Which of the following conditions generally holds when a monopoly firm is producing its profit-maximizing level of output?
MC = MR < AR
Refer to Figure 11-2. The equilibrium price in the monopoly market is _____.
OA
Refer to Figure 11-3. The equilibrium price charged by a profit-maximizing monopoly firm is _____.
OA
Refer to Figure 11-2. The quantity of output produced by the monopolist is _____.
OC
Refer to Figure 11-3. A profit-maximizing monopoly firm will produce output equal to _____.
OC
Refer to Figure 11-1. An unregulated monopolist will sell _____ units of output at a price of_____ to maximize profit.
OJ and OW
Which of the following is true for a monopoly firm?
The demand curve is a declining average revenue curve.
Which of the following is true for a monopoly firm?
The monopolist's demand curve is downward-sloping and the marginal revenue curve lies below the average revenue curve.
Which of the following is not necessarily true at the profit-maximizing quantity for a monopolist?
The slope of the marginal revenue curve equals the slope of the marginal cost curve.
Refer to Figure 11-2. If the government wishes to regulate the monopoly firm by setting the price at OB in the market, the monopolist will:
continue to earn economic profits
A monopoly firm will maximize profits by producing the level of output where:
the difference between total cost and total revenue is maximized.
Refer to Table 11-2. The economic profit earned by the firm by producing the profit-maximizing level of output is _____.
$18
What is the marginal revenue associated with the sale of the fifth unit in Table 11-2?
$2
Refer to Table 11-1. What is the marginal revenue when 3 units are sold?
$50
The demand curve for a firm operating in a monopoly market is the same as _____.
its average revenue curve
