Graded Quiz 9

Marginal revenue is less than $10 but more than zero.

A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. Which of the following can be concluded about the firm's marginal revenue for this output level?

The students resold the juice to other consumers.

A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice. Which of the following explanations is most likely to account for this failure?

a downward-sloping long-run average cost curve.

A natural monopoly forms when a firm has:

‒$40.

According to the information provided in the table below, marginal revenue from the sixth unit of output is:

less than $140.

For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140. Marginal revenue at that output level is:

false

Monopolists can earn positive economic profits in the long run because they are more productively efficient than perfectly competitive firms.

is the same as its average revenue curve.

The demand curve facing a non-discriminating monopolist:

zero

The figure below shows the cost and revenue curves faced by a monopolist. If the monopolist practices perfect price discrimination, deadweight loss will be _____.

price elastic.

The figure below shows the cost and revenue curves faced by a monopolist. The demand curve faced by the monopolist at the profit-maximizing output is:

vary between $212 and $120.

The figure below shows the cost and revenue curves faced by a profit-maximizing monopolist. If the monopolist engages in perfect price discrimination, the price of the monopolist's good will:

Area a

The figure below shows the cost and revenue curves faced by a profit-maximizing monopolist. Which of the following areas shown in the figure given below represents consumer surplus under monopoly?

represented by the area under the demand curve and above the price line corresponding to $136.

The figure below shows the cost and revenue curves for a monopolist that does not practice price discrimination. The consumer surplus at the profit-maximizing level of output is:

$4 and 7 units, respectively.

The figure below shows the cost and revenue curves for a monopolist. Assume that the monopolist does not shut down production in the short run. The profit-maximizing price and output for this non-price discriminating monopolist are:

884 units

The figure below shows the cost and revenue curves for a monopolist. The output level that is most likely to achieve allocative efficiency in this market is _____.

$30

The table below shows the demand schedule for a monopolist. Marginal revenue associated with the sale of the fourth unit of output is _____.

3 units

The table below shows the price and output combinations at different output levels for a non price-discriminating monopolist. The profit-maximizing output for this monopolist is _____.

the monopolist charges lower prices to discourage competition.

The true deadweight loss created by a monopolist that does not practice discrimination is most likely to be less than the loss indicated by the shaded area in the figure below, when:

earn long-run economic profits.

Unlike perfectly competitive firms, monopolists:

A municipal water company

Which of the following is most likely to be considered a natural monopoly?

It will earn a positive economic profit in the long run.

Which of the following is most likely to be true of a monopoly in long-run equilibrium if it enjoys a patent and earns economic profit in the short run?

Perfect price discrimination allows the monopolist to reap the entire gains from production.

Which of the following is true for a monopolist that engages in perfect price discrimination?

Marginal revenue earned by a monopolist is less than the price of its product.

Which of the following is true of marginal revenue earned by a non price-discriminating monopolist that charges a single price?

Normal profit is ensured where price is equal to average total cost.

Which of the following is true of the profit earned by a monopolist?

The presence of strong diseconomies of scale

Which of the following isnota condition for price discrimination?

Price equals average revenue at all output rates for both types of firms.

Which of these is a similarity between a monopolist that does not practice price discrimination and a perfectly competitive firm?