micro economics chapter 13 - monopolies

The demand curve for a monopoly is

above the MR curve

You own a lemonade stand in a competitive market, and as such, you are a price-taking firm. Which of the following events would most likely increase your market power?

You own exclusive rights to harvest lemons from all domestic citrus orchards

The demand curve for a monopoly is

also the industry demand curve

diamond rings are relatively scarce because:

diamond producers limit the quantity supplied to the market

The large barriers to entry are a reason a monopoly

earns an economic profit in the long run

Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will charge the lower price to the group with

the higher price elasticity of demand

Price discrimination can occur if

the market structure is a monopolistic competition

A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and an additional 75 subscriptions when the price is $10 a week. The MC for the provision of the cable is $5 a week. There are no fixed costs. If the company is allowed to offer different prices for its good, what is the maximum amount of profit this company can earn?

$1,375

Price discrimination leads to a _____ price for consumers with a _____ demand

lower; more elastic

The GoSports Company is a profit-maximizing firm with a monopoly in the production of school team pennants. The firm sells its pennants for $10 each. We can conclude that GoSports is producing a level of output at which

marginal cost equals marginal revenue