Chapter 12

48. In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to:

49. An unregulated pure monopolist will maximize profits by producing that output at which:

50. Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is

51. Suppose that a pure monopolist can sell 4 units of output at $2 per unit and 5 units at $1.75 per unit. The monopolist will produce and sell the fifth unit if its marginal cost is:

52. If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by:

53. Refer to the above diagram. To maximize profits or minimize losses this firm should produce:

54. Refer to the above diagram. At the profit-maximizing level of output, total revenue will be:

55. Refer to the above diagram. At the profit-maximizing level of output, total cost will be:

56. Refer to the above diagram. At the profit-maximizing level of output, the firm will realize:

57. If profits are maximized (or losses minimized), which of the following conditions is common to both unregulated monopoly and to pure competition?

58. If a pure monopolist is producing at that output where P = ATC, then:

59. A pure monopolist's short-run profit-maximizing or loss-minimizing position is such that price:

60. Refer to the above diagram for a pure monopolist. Monopoly price will be:

61. Refer to the above diagram for a pure monopolist. Monopoly output will be:

62. Refer to the above diagram for a pure monopolist. Monopoly profit:

63. In the short run, a monopolist's economic profits:

64. Refer to the above diagram. If this industry is purely competitive, the profit-maximizing price and quantity will be:

65. Refer to the above diagram. If this industry is comprised of only one seller, the profit-maximizing price and quantity will be:

66. When a pure monopolist is producing its profit-maximizing output, price will:

67. The supply curve for a monopolist is:

68. The supply curve of a pure monopolist:

69. To maximize profit a pure monopolist must:

70. Economic profit in the long run is:

71. Which of the following statements is correct?

72. Confronted with the same unit cost data, a monopolistic producer will charge:

73. An important economic problem associated with pure monopoly is that, at the profit maximizing outputs, resources are:

74. A single-price monopoly is economically inefficient because, at the profit maximizing output:

75. At its profit-maximizing output, a pure nondiscriminating monopolist achieves:

76. The profit-maximizing output of a pure monopoly is not socially optimal because in equilibrium:

77. A single-price pure monopoly is economically inefficient:

78. Refer to the above diagrams. Diagram (A) represents:

79. Refer to the above diagrams. In diagram (B) the profit-maximizing quantity is:

80. Refer to the above diagrams. With the industry structure represented by diagram:

81. Refer to the above diagrams. With the industry structure represented by diagram:

82. Refer to the above diagrams. The price will be _______ and the quantity will be _______ with the industry structure represented by diagram (B) compared to the one represented in (A).

83. X-inefficiency refers to a situation in which a firm:

84. There is some evidence to suggest that X-inefficiency is:

85. Price discrimination refers to:

86. The practice of price discrimination is associated with pure monopoly because:

87. Which of the following is not a precondition for price discrimination?

88. A price discriminating pure monopolist will attempt to charge each buyer (or group of buyers):

89. Other things equal, in which of the following cases would economic profit be the greatest?

90. If a monopolist engages in price discrimination, it will:

91. Price discrimination is:

93. The above nondiscriminating monopolist should set its price at:

94. At its profit-maximizing output, the above nondiscriminating monopolist:

95. If the above profit-maximizing monopolist is able to price discriminate, charging each customer the price associated with each given level of output, how many units will the firm produce?

96. If the above profit-maximizing monopolist is able to price discriminate, charging each customer the price associated with each given level of output, how much profit will the firm earn?

97. Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit-maximizing golf course should:

98. Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, then over the course of a full seven-day week this price-discriminating, profit-maximizing golf course should sell at total of:

99. Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit-maximizing golf course will earn how much economic profit over the course of a full seven-day week?

100. Other things equal, a price discriminating monopolist will:

101. Refer to the above diagram for a pure monopolist. If the monopolist is unregulated, it will maximize profits by charging:

102. Refer to the above diagram for a pure monopolist. Suppose a regulatory commission is created to determine a legal price for the monopoly. If the commission seeks to provide the monopolist with a "fair return," it will set price at:

103. Refer to the above diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of:

104. Refer to the above diagram for a pure monopolist. If a regulatory commission sets the price to achieve the socially optimal allocation of resources, it will have to:

105. A dilemma of regulation is that:

106. If a regulatory commission wants to provide a natural monopoly with a fair return, it should establish a price that is equal to:

107. If a regulatory commission wants to establish a socially optimal price for a natural monopoly, it should select a price:

108. Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC. This means that:

109. If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below average total cost at the resulting output, then:

110. Refer to the above diagram for a natural monopolist. If a regulatory commission were to set a maximum price of P3, the monopolist would:

111. Refer to the above diagram for a natural monopolist. If a regulatory commission set a maximum price of P2, the monopolist would:

112. Refer to the above diagram for a natural monopolist. If a regulatory commission set a maximum price of P1, the monopolist would produce output:

113. (Consider This) Children are charged less than adults for admission to professional baseball games but are charged the same prices as adults at the concession stands. This pricing system occurs because:

114. (Consider This) Children are charged less than adults for admission to professional baseball games but are charged the same prices as adults at the concession stands. Which of the following conditions of price discrimination explain why this occurs?