Will rate as soon as answered! Thanks! **Question 1 (1 point) Question 1 Unsaved

Question

Will rate as soon as answered! Thanks!

**Question 1 (1 point)
Question 1 Unsaved
Which of the following is not necessary for price discrimination to exist:
Question 1 options:


buyers in various markets must have different price elasticities of demand.

ability to prevent resale of the product or service.

ability to separate markets at reasonable cost.

perfectly elastic demand curve.


**Question 2 (1 point)
Question 2 Unsaved

Charging different prices for similar products that have different marginal costs is called:
Question 2 options:

predatory pricing.

price differentiation.

price discrimination.

price dumping.


**Question 3 (1 point)
Question 3 Unsaved
Which of the following is not a barrier to entry into a market?
Question 3 options:

Difficulty in raising adequate capital necessary to enter an industry.

Governmental restrictions such as tariffs.

Ownership of an important resource where there is no good substitute.

Diseconomies of scale.


**Question 4 (1 point)
Question 4 Unsaved
For a monopoly,
Question 4 options:

price differs from both average revenue and marginal revenue.

price equals average revenue only.

price equals both average revenue and marginal revenue.

price equals marginal revenue only.


**Question 5 (1 point)
Question 5 Unsaved
As the number of imperfect substitutes for a monopoly firm's product increases, the price elasticity of
demand:
Question 5 options:

approaches zero.

cannot be determined.

Increases

decreases.


**Question 6 (1 point)
Question 6 Unsaved
Monopoly producers are faced with
Question 6 options:

only a few competitors producing the same product.

at least one competitive producer of the same product.

no competitive producers of the same product.

many competitors producing the same product.


**Question 7 (1 point)
Question 7 Unsaved
Suppose a monopolist is producing where the marginal cost curve intersects the demand curve. The
monopolist
Question 7 options:

can increase profits by selling fewer units since marginal cost is greater than marginal revenue.

can increase profits by selling more units since marginal cost is less than marginal revenue.

can increase profits by selling more units at a higher price.

is maximizing profits.


**Question 8 (1 point)
Question 8 Unsaved
The monopolist sets price by
Question 8 options:

charging the price where marginal revenue equals price.

producing the quantity where marginal cost equals marginal revenue and charging the price that
corresponds to that quantity.

charging the price where marginal cost equals price.

charging the price where average total cost equals marginal cost.


**Question 9 (1 point)
Question 9 Unsaved
A monopolist is defined as
Question 9 options:


a large firm's, making substantial profits, that is able to make other firm's do what it wants.

a firm with annual sales over $10 million.

a single supplier of a good or service for which there is no close substitute.

a producer of a good or service that is expensive to produce, requiring large amounts of capital
equipment.


**Question 10 (1 point)
Question 10 Unsaved
The demand curve faced by the monopolist:
Question 10 options:

has lower price elasticity of demand as close substitutes for the monopoly product are
developed.

has greater price elasticity of demand as close substitutes for the monopoly product are
developed.

is always inelastic where MR = Me and profits are maximized.

none of the above.


**Question 11 (1 point)
Question 11 Unsaved
Why is there a social cost of monopoly?
Question 11 options:

The firm produces too much of the good.

The firm does not equate marginal cost to marginal revenue.

Too many resources are being used in a monopoly.

Too few resources are being used in a monopoly.


**Question 12 (1 point)
Question 12 Unsaved
The demand curve of the monopolist:
Question 12 options:

is the same as the industry demand curve.

is perfectly elastic.

is perfectly inelastic.

is the same as a price-taking firm.


**Question 13 (1 point)
Question 13 Unsaved
A natural monopoly:
Question 13 options:

has decreasing long-run average total costs over a very large range of output.

has decreasing long-run marginal costs over a very large range of output.

has economies of scale over a very large range of output.

all of the above.


**Question 14 (1 point)
Question 14 Unsaved
If we were to compare the amount produced by Firms in a competitive industry to the output produced by a
monopoly, the monopolist will produce:
Question 14 options:

on the inelastic portion of the demand curve but at a higher price.

the same quantity but would make profits because of economies of scale.

on the elastic portion of the demand curve and charge a higher price.

on the inelastic portion of the demand curve because the monopolist would make the entire
demand curve inelastic.

Explanation / Answer

1. buyers in various markets must have different price elasticities of demand 2. price differentiation 3. Diseconomies of scale. 4. price equals marginal revenue only 5. approaches zero 6. no competitive producers of the same product. 7. can increase profits by selling more units at a higher price. 8. charging the price where marginal cost equals price. 9. single supplier of a good or service for which there is no close substitute. 10. is always inelastic where MR = Me and profits are maximized. 11. Too many resources are being used in a monopoly. 12. is perfectly inelastic. 13. all of the above. 14. on the inelastic portion of the demand curve because the monopolist would make the entire demand curve inelastic.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.