1. Listic market structure, if price is above average total cost, the monopolist is
a. earning an economic profit.
b. taking an economic loss.
c. minimizing total fixed costs.
d. minimizing total variable costs.
|
Price
|
Quantity
Demanded
|
Fixed Cost
|
Variable Cost
|
Total Revenue
|
Total Cost
|
Marginal Revenue
|
Marginal Cost
|
|
$100
|
0
|
$10
|
$0
|
(D)
|
(I)
|
|
|
|
90
|
1
|
10
|
25
|
(E)
|
(J)
|
(N)
|
(S)
|
|
80
|
2
|
(B)
|
65
|
(F)
|
(K)
|
(O)
|
(T)
|
|
(A)
|
3
|
10
|
130
|
225
|
(L)
|
(P)
|
(U)
|
|
60
|
4
|
10
|
(C)
|
(G)
|
220
|
(Q)
|
(V)
|
|
50
|
5
|
10
|
310
|
(H)
|
(M)
|
(R)
|
(W)
|
2. Refer to Exhibit 24-4. The profit-maximizing single-price monopolist's maximum profit is
a.$70.
b. $85.
c. $110.
d. $130.
e. $140.
3. Refer to Exhibit 24-4. What dollar amounts go in blanks (A), (B), (C), (D), and (E), respectively?
a. $70; $10; $90; $10; and $130
b. $90; $70; $50; $30; and $10
c. $25; $10; $10; $30; and $50
d. $75; $10; $210; $0; and $90
4. Refer to Exhibit 24-4. What dollar amounts go in blanks (O), (P), (Q), and (R), respectively?
a. $90; $80; $53.33; and $60
b. $90; $70; $50; and $30
c. $70; $65; $15; and $10
d. $0; $90; $160; and $210
Exhibit 24-8
|
Quantity
|
Total Revenue
|
Total Cost
|
|
2
|
$200
|
$150
|
|
3
|
$270
|
$175
|
|
4
|
$328
|
$205
|
|
5
|
$375
|
$252
|
|
6
|
$390
|
$312
|
5 . Refer to Exhibit 24-8. A profit-maximizing single-price monopolist will set the price at
a. $90 per unit.
b. $82 per unit.
c. $65 per unit.
d. $75 per unit.
e. There is not enough information provided to answer this question.
6. When the monopoly firm sells two units of its product, it earns total revenue of $260 and it incurs a total cost of $210. If its marginal revenue for the second unit was $110, what was the marginal revenue of the first unit?
a. $100
b. $150
c. $133
d. $220
e. There is not enough information to answer the question.
Exhibit 24-9
| |
Quantity Sold
|
|
|
Price
|
(units)
|
Total Cost
|
|
$10
|
10
|
$80
|
|
9
|
20
|
100
|
|
8
|
30
|
130
|
|
7
|
40
|
170
|
|
6
|
50
|
230
|
|
5
|
60
|
300
|
|
4
|
70
|
380
|
7. Refer to Exhibit 24-9. A single-price monopolist that seeks to maximize profits will sell ______ units and charge a per-unit price of ______ dollars.
a. 20; 9
b. 40; 7
c. 50; 6
d. 10; 10
e. 7; 40
8. Refer to Exhibit 24-9. A single-price monopolist earns a total profit of ______ when it produces and sells 20 units of its good.
a. $80.
b. $100.
c. $30.
d. $61.
e. $49.
9. Some monopolistic competitive firms may earn positive economic profits in the long run because of
a. product differentiation.
b. many buyers and sellers.
c. easy entry and exit.
d. b and c
e. all of the above
10 Because of one assumption in the theory of monopolistic competition, the excess capacity theorem exists. What is the assumption?
a. There are many sellers and buyers.
b. Each firm produces and sells a slightly differentiated product.
c. There is easy entry into the industry.
d. There is easy exit from the industry.
11. In monopolistic competition, firms can compete in terms of
a. price.
b. quality of product.
c. service.
d. location.
e. all of the above
12. A monopolistic competitor has a demand curve that is _______ elastic than a perfectly competitive firm's demand curve and __________ a monopolistic firm's demand curve.
a. less; more elastic than
b. less; less elastic than
c. more; more elastic than
d. less: equally as elastic as
Exhibit 25-7
|
|
Quantity Sold
|
|
|
Price
|
(units)
|
Total Cost
|
|
$10
|
100
|
$600
|
|
9
|
200
|
1,100
|
|
8
|
300
|
1,400
|
|
7
|
400
|
1,800
|
|
6
|
500
|
2,400
|
|
5
|
600
|
3,200
|
|
4
|
700
|
4,200
|
13 . Refer to Exhibit 25-7. Fixed costs are equal to.
a. $0.
b. $100.
c. $600.
d. $590.
e. There is not enough information given to answer the question.
14. Refer to Exhibit 25-7. The marginal cost of the 700th unit produced equals
a. $8.
b. $100.
c. $5.
d. $10.
e. $6.
15. Refer to Exhibit 25-7. The marginal revenue of the 700th unit produced equals
a. $8.
b. $80.
c. -$2.
d. -$20.
e. $2.
Exhibit 25-8
|
Quantity
|
Total Revenue
|
Total Cost
|
|
2
|
$140
|
$100
|
|
3
|
$180
|
$110
|
|
4
|
$200
|
$130
|
|
5
|
$200
|
$160
|
|
6
|
$180
|
$200
|
16. Refer to Exhibit 25-8. A profit-maximizing monopolistic competitive firm will produce __________ units of output and charge a price of
a. 3; $60.
b. 4; $50.
c. 5; $40.
d. 6; $30.