Econ 202 Exam 3

Front 1

Single-price monopolies mazimize profit by producing the amount of output

Back 1

Marginal Revenue = Marginal Cost

Front 2

A single-price monopolist will produce the output at which _____.

Back 2

Marginal Revenue = Marginal Cost

Front 3

Profit-maximizing single-price monopolist

Back 3

MC = MR
P > MR

Front 4

Not necessarily true for a profit-mazimizing single-price monopolist

Back 4

P > ATC

Front 5

Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopy can increase its profit by _____.

Back 5

Raising its price and decreasing its output

Front 6

The above figure illustrates a single-price unregulated monopolist. If the monopolist mazimizes its profit, the consumer surplus equals _____.

Back 6

20,000
(MR = MC)

Front 7

The above figure illustrates a single-price unregulated monopolist. If the monopolist mazimizes its profit, the deadweight loss equals _____.

Back 7

10,000

Front 8

Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sues demand and marginal revenue curves are illustrated in the figure above. Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is

Back 8

$150

Front 9

1

Back 9

1