Economics Final (9)

Front 1

Which of the following is not associated with the monopoly market structure?

- Many sellers

-A single seller

-A unique product

-Impossible entry into the market.

Back 1

Many Sellers

Front 2

For a monopoly to successfully price discriminate, its customers must:

- feel that the product is a necessity.

-have identical demands.

-be unable to resell the product.

- actively engage in arbitrage.

Back 2

be unable to resell the product.

Front 3

A perfectly competitive firm is a price taker, but a monopoly is a price maker.

t/f

Back 3

True

Front 4

The goal of any monopolist is to maximize:

Back 4

Economic Profit

Front 5

Monopolists are criticized because they are inefficient. What is meant by this statement?

Back 5

Monopolists usually don't produce at the minimum of the ATC.

Front 6

Back 6

Front 7

A monopoly market is characterized by a single seller of a product which has few, if any, suitable substitutes.

T/F

Back 7

True

Front 8

Compared to a perfectly competitive industry, a monopolist with the same marginal cost and demand curve will charge:

- a higher price and produce a higher volume of output.

- a lower price and produce a higher volume of output.

- a lower price and produce a lower volume of output.

-a higher price and produce a lower volume of output.

-the same price and produce the same volume of output.

Back 8

Front 9

The monopolist faces the market demand curve.

t/f

Back 9

True

Front 10

At a price of $5, 24 units of the good would be sold; at a price of $7, 25 units of output would be sold. The marginal revenue of the 25th unit of output is:

Back 10

$55

Front 11

A monopolist always selects a price on the elastic portion of its demand curve.

t/f

Back 11

True

Front 12

what represents an arbitrage transaction?

Back 12

A trader buys a block of government bonds in one market where it is temporarily priced below where it can be immediately resold in a different market.

Front 13

The strategy underlying price discrimination is to:

Back 13

increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.

Front 14

____ is the act of buying a coimodity in one market at a lower price and selling it in another market at a higher price.

Back 14

Arbitrage

Front 15

A monopoly will price its product:

Back 15

at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.

Front 16

Back 16

Front 17

Which of the following is a difference between a monopolist and a firm in perfect competition?

-The marginal revenue curve is downward-sloping.

-Marginal revenue equals price.

-Economic profits are zero in the long-run.

-The marginal revenue curve lies above the demand curve.

Back 17

The marginal revenue curve is downward-sloping.

Front 18

An example of price discrimination is the price charged for:

Back 18

theater tickets that offer lower prices for children.

Front 19

Although a monopoly can charge any price it wishes, it chooses:

Back 19

the price that maximizes profit.