ScienceEconomicsmonopoly example #35244
Please enter something

monopoly example #35244

Ondina Perry avatar Ondina Perry
8 January 2024
4.9 (66 reviews)
17 test answers

Unlock all answers in this set

Unlock answers (13)
question
If marginal costs increase, a monopolist will:
answer
increase price and decrease output
question
The demand curve a monopolist faces:
answer
is the market demand curve.
question
At the long-run equilibrium level of output, the monopolist's marginal cost will:
answer
be less than price.
question
Which of the following is a difference between a monopolist and a firm in perfect competition?
answer
The marginal revenue curve is downward-sloping.
question
For a monopolist, marginal revenue is always:
answer
below market price.
question
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will:
answer
restrict output to increase the price even higher.
question
A monopoly:
answer
faces the market demand curve which is downward sloping. has a marginal revenue curve which slopes downward and lies below its demand curve. will maximize profits by producing an output level where MR = MC. all of these.
question
What should a profit maximizing monopolist do if she is currently producing where MC < MR?
answer
Increase output until MC = MR.
question
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will:
answer
restrict output to increase the price even higher.
question
A monopoly is:
answer
the only seller of a good for which there are no good substitutes in a market with high barriers to entry.
question
A monopoly firm can sell its fourth unit of output for a price of $250. In order to sell more than five units, it must expect to receive a price:
answer
less than $250.
question
At any point where a monopolist's marginal revenue is positive, the downward-sloping straight-line demand curve is:
answer
elastic, but not perfectly elastic.
question
For a monopolist
answer
price is above marginal revenue.
question
Which of the following factors is not a barrier limiting the entry of potential competitors into a market?
answer
an inelastic demand for a product
question
A monopoly will price its product
answer
at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.
question
A monopolist will earn economic profits as long as his price exceeds:
answer
average total cost.
question
Which of the following is true for the monopolist?
answer
Marginal revenue is less than the price charged. Economic profit is possible in the long-run. Profit maximizing or loss minimizing occurs when marginal revenue equals marginal cost.