Question 6 (1 point) A tax that is imposed on an imported good is called a Quest

Question

Question 6 (1 point)

A tax that is imposed on an imported good is called a

Question 6 options:

quota.

patent.

government license.

tariff.

Question 7 (1 point)

A monopolist's demand curve is

Question 7 options:

perfectly inelastic.

the industry demand curve.

of unit elasticity throughout.

perfectly elastic.

Question 8 (1 point)

If a monopolist raises its price,

Question 8 options:

the quantity demanded decreases.

it raises the barriers to entry.

the quantity demanded increases.

the quantity demanded remains the same.

Question 9 (1 point)

The price elasticity of demand for a monopolist

Question 9 options:

is infinite since the monopolist is the only firm in the market.

decreases as more competition occurs in the market.

is undefined due to the lack of competition.

increases as similar products enter the market.

Question 10 (1 point)

The monopolist should NEVER produce in the

Question 10 options:

range of output for which there is a price elasticity exceeding one.

range of output for which the price elasticity of demand is infinity.

elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price.

inelastic segment of its demand curve because further lowering of the price reduces total revenue.

quota.

patent.

government license.

tariff.

Explanation / Answer

Answer)

Q6.) D.tariff. ( Tariffs are a political tool that have been used throughout history to control the amount of imports that flow into a country and to determine which nations will be granted the most favorable trading conditions. )

Q7.) B. the industry demand curve. ( monopolist is a single seller. He himself is a firm as well as an industry. Hence market demand curve is in itself the demand curve of the monopolist. )

Q8.) A.the quantity demanded decreases. ( If a monopolist raises its price, the downward sloping demand curve means that it will sell fewer units.)

Q9.) D.increases as similar products enter the market. ( The price elasticity of the demand curve facing a monopoly firm determines if the marginal revenue received by the monopoly is positive (elastic demand) or negative (inelastic demand). )

Q10.) D. inelastic segment of its demand curve because further lowering of the price reduces total revenue.

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