Launchpad Learning Curve Chap 8 Econ
If James's marginal and average costs are $10, and his firm is in a perfectly competitive industry, James's maximum profit in the long run is $_____.
$0
If James's marginal and average cost is $8, the profit-maximizing price is $_____.
$12
If James's firm operates in a perfectly competitive market, consumer surplus is $_____.
$32
If the De Beers diamond monopoly lowers the price of a diamond from $800 to $750 and sales increase from 4 to 5 diamonds, the marginal revenue of the fifth diamond is $_____.
$550
If James's marginal and average costs are $10, James's maximum profit is:
$9
If the monopolist depicted in the graph switches from being a single-price monopolist to a perfectly price-discriminating monopolist, output will expand by _____ units.
4
If James's firm is a monopoly, deadweight loss is $_____.
8
if james's firm is a monopoly, consumer surplus is
8
A monopolist who practices price discrimination:
can increase profits above what would be earned without price discrimination.
If the monopolist perfectly price discriminates:
consumer surplus will be zero.
Which of the following is NOT a source of sustainable monopoly power?
decreasing returns to scale
The fact that it is a natural monopoly is revealed by the:
downward-sloping average total cost curve.
If a monopolist practices price discrimination, it will sell more units, but decrease profits. This statement is:
false.
In the fast food industry, there are many firms producing a differentiated product. This is an example of:
monopolistic competition.
True monopolies are rare in the modern American economy because:
of antitrust laws.
The automobile industry is an example of which market structure?
oligopoly
differentiated soft drinks
oligopoly
Monopoly describes a market structure in which there is/are _____ producer(s) and the product(s) is/are _____.
one; undifferentiated
What is a strategy for dealing with a natural monopoly?
price regulation
Compared to a perfectly competitive firm, a monopolist in a retail market:
produces less output.
The advantage of patents on pharmaceuticals is that they:
reward pharmaceutical researchers with profits and give them the incentive to develop new medications.
At low levels of output,:
the quantity effect dominates the price effect.
In order to successfully practice price discrimination, different groups of a monopolist's customers must have different sensitivities to price. This statement is:
true.
In the long run, monopolies earn economic profits. This statement is:
true.
Monopoly produces a net welfare loss for society. This statement is:
true.
