Chapter 10_2: Monopoly

Chapter 10_2: Monopoly; Time: 40 phút

Question 1: The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's
a. marginal revenue will decrease.
b. total revenue will fall.
c. total revenue will remain the same.
d. total revenue will rise.

Question 1 - 6

Question 2: The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point u, the monopoly's
a. total revenue will remain the same.
b. total revenue will fall.
c. marginal revenue will increase.
d. total revenue will rise.

Question 3: The figure above shows a monopoly firm's demand curve. At point t
a. demand is inelastic.
b. demand is elastic.
c. demand is unit elastic.
d. total revenue is at a minimum.

Question 4: The figure above shows a monopoly firm's demand curve. The monopoly's total revenue is at its maximum when the firm produces at point
a. t.
b. u.
c. x.
d. r.

Question 5: The figure above shows a monopoly firm's demand curve. The monopoly's total revenue is zero at point
a. x.
b. t.
c. u.
d. r.

Question 6: The figure above shows a monopoly firm's demand curve. At point u in the figure, the demand facing the monopoly is
a. less than the supply.
b. inelastic.
c. unit elastic.
d. elastic.

Question 7: An unregulated monopoly will
a. produce in the elastic range of its demand curve.
b. flood the market with goods to deter entry.
c. produce only where marginal revenue is zero.
d. produce in the inelastic range of its demand curve.

Question 8: An unregulated monopoly finds that its marginal cost exceeds its marginal revenue. In order to increase its profit, the firm will
a. lower its price and increase its output.
b. raise its price and increase its output.
c. raise its price and decrease its output.
d. continue to produce this level of output because any change will lower its profit.

Question 8 - 12

Question 9: The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between
a. 0 and 20 units.
b. 5 and 20 units.
c. 0 and 15 units.
d. 0 and 5 units.

Question 10: The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is zero if it produces
a. 15 units of output.
b. 5 or 20 units of output.
c. 0 units of output.
d. none of the above

Question 11: The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is maximized when it produces
a. 5 units of output.
b. 20 units of output.
c. 0 units of output.
d. 15 units of output.

Question 12: The figure above shows a monopoly's total revenue and total cost curves. The monopoly's marginal revenue equals its marginal cost when it produces
a. 5 units of output.
b. 15 units of output.
c. 20 units of output.
d. 0 units of output.

Question 13 - 15

Question 13: The monopoly with the TR and TC curves shown in the figure above will produce
a. 5 units of output.
b. 20 units of output.
c. 15 units of output.
d. 0 units of output.

Question 14: For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be
a. 4 units per year and the price will be $6.
b. 6 units per year and the price will be $4.
c. 4 units per year and the price will be $4.
d. None of the above answers is correct.

Question 15: The unregulated, single-price monopoly shown in the figure above will produce where its demand
a. equals its ATC curve.
b. is inelastic.
c. is elastic.
d. equals its MC curve.

Question 16 - 20

Question 16: The unregulated, single-price monopoly shown in the figure above has a total economic profit of
a. 4
b. 16
c. 24
d. 8

Question 17: The unregulated, single-price monopoly shown in the figure above will sell
a. 50 tickets.
b. 30 tickets.
c. less than 30 tickets.
d. 100 tickets.

Question 18: An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be
a. 30
b. 40
c. 140
d. 80

Question 19: An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total economic profit when it is maximizing its profit will be
a. 0
b. 50
c. negative.
d. 25

Question 20: The monopoly illustrated in the figure above is unregulated and charges a single price. The deadweight loss created by the monopoly is
a. $90.00.
b. 0
c. $22.50.
d. $45.00.

Question 21: Unregulated monopolies can often earn an economic profit in the long run because
a. they have high costs.
b. barriers to entry prevent competing firms from entering the market.
c. they receive government subsidies.
d. the risks of running a monopoly are high.

Question 22: Compared to a single-price monopoly, a perfectly competitive industry produces
a. more output and has a higher price.
b. more output and has a lower price.
c. less output and has a higher price.
d. less output and has a lower price.

Question 23: Which of the following statements is true?
a. A perfectly competitive industry produces more output and charges the same price as a single-price monopoly.
b. A perfectly competitive industry produces less output but charges a lower price than a single-price monopoly.
c. A perfectly competitive industry produces less output and charges the same price as a single-price monopoly.
d. A perfectly competitive industry produces more output and charges a lower price than a single-price monopoly.

Question 24: The fundamental reason a single-price monopoly creates a deadweight loss is that it
a. restricts output.
b. raises variable cost.
c. raises fixed cost.
d. reduces the elasticity of demand.

Question 25

Question 25: The unregulated, single-price monopolist illustrated in the figure above has a total revenue of
a. $8.00 per day.
b. $36.00 per day.
c. $16.00 per day.
d. $40.00 per day.



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