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13 Cards in this Set

  • Front
  • Back
which would be defining characteristics of pure monopoly
a. the firm does no advertising and it sells a standardized product
b. no close substitutes for the product exist and there is one seller
c. the firm can easily enter into or exit from the industry and profits are guaranteed.
d. the firm holds a patent and is technologically progressive
a barrier to entry that significantly contributes to the establishment of a monopoly would be
a. economies of scale
b. price-taking behavior
c. technological progress
d. X-inefficiency
the demand curve for pure monopolist is
a. perfectly price elastic.
b. perfectly price inelastic
c. downsloping
d. upsloping
At present output a monopolist determines that its marginal cost is $18 and its marginal revenue is $21. The monopolist will maximize profits or minimize losses by
a. increasing price while keeping output constant
b. decreasing price and increasing output
c. decreasing both price and output
d. increasing both price and output
How many units of output will the profit-maximizing monopolist produce
a. 1
b. 2
c. 3
d. 4
the profit-maximizing monopolist would set its price at
a. $120
b. $200
c. $233
d. $400
if the monopolist could sell each unit of the product at the maximum price the buyer of that unit would be willing to pay for it, and if the monopolist sold 4 units, total revenue would be
a. $1200
b. $1800
c. $2000
d. $2800
if the monopolist were forced to produce the socially optinal output by the imposition of a ceiling price, the ceiling price would have to be
a. $200
b. $300
c. $400
d. $500
the supply curve for a pure monopolist
a. is the portion of the marginal cost curve that lies above the average variable cost curve
b. is perfectly price elastic at the market price
c. is upsloping
d. does not exist
the profit-maximizing output and price for this monopolist would be
a. 5 units and a $450 price
b. 6 units and a $400 price
c. 7 units and a $350 price
d. 8 units and a $300 price
the marginal revenue that the price-discriminating monopolist obtains from the sale of an additional unit is equal to
a. total revenue
b. average cost
c. unit cost
d. price
the profit-maximizing output for the price-discriminating monopolist would be
a. 6 units
b. 7 units
c. 8 units
d. 9 units
how much greater would the total economic profits be for the discriminating monopolist than the non-discriminating monopolist
a. $720
b. $830
c. $990
d. $1070