1. Patents A. give firms the exclusive ideal to create or regulate a product for at leastern 17 years. B. are supplied to encourage research and development. C. are a barrier to entry. D. every one of the above
2. A pucount monopolistic sector A. is defined by considerable enattempt obstacles. B. is identified by a firm that is a price searcher. C. produces a product or service for which tbelow are no close substitutes. D. all of the above
3. A herbal monopoly occurs when A. tright here are substantial economic climates of scale. B. a firm owns or controls some reresource that is essential to production. C. long-run average costs increase repeatedly as output is enhanced. D. tbelow are significant diseconomic situations of range.
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4. What perform economic situations of range, predatory behaviour, and also patents all have in common? A. They should all be current prior to price discrimination can be practised. B. They are all barriers to entry. C. They all help explain why a monopolist"s demand also and also marginal revenue curves coincide. D. They all aid define why the long-run average price curve is U-shaped.
5. The typical monopolistic firm"s demand also curve A. is downward sloping. B. is perfectly elastic. C. synchronizes with its marginal revenue curve. D. is unitary inelastic.
6. The typical monopolistic firm"s marginal revenue curve A. is a horizontal curve. B. equates to the monopolists demand curve. C. is over the monopolist"s demand also curve. D. is below the monopolist"s demand also curve.
7. A firm is being productively effective if it produces at a level where A. price amounts to marginal expense. B. marginal revenue equates to marginal expense. C. average total price is decreased. D. it earns a normal profit.
8. Given the same unit cost information, a monopolistic producer will charge A. the same price and also produce the exact same output as a competitive firm. B. a higher price and also produce a larger output than a competitive firm. C. a higher price and create a smaller sized output than a competitive firm. D. a lower price and create a smaller sized output than a competitive firm.
9. Pudepend competitive firms and pure monopolists are similar in that A. the demand curves of both are perfectly elastic. B. significant entry obstacles are common to both. C. both are price takers. D. both maximize profits wbelow MR = MC.
10. A perfectly discriminating pure monopolist will certainly charge each buyer A. various prices in order to compensate for differences in the qualities of the product. B. the same price if per unit price is constant for each unit of the product. C. the price that amounts to the buyer"s average expense. D. the maximum price each buyer would certainly be willing to pay for each unit.
11. If a monopolist engperiods in perfect price discrimination, it will A. realize a larger revenue and a larger profit. B. charge a higher price wright here individual demand is elastic, and also a lower price wbelow individual demand also is inelastic. C. develop a smaller sized output than when it did not discriminate. D. all of the above
12. If a regulatory commission desires to carry out a herbal monopoly via a "normal return," it must develop a price that is equal to A. minimum average fixed expense. B. average total cost. C. marginal price. D. marginal revenue.
13. The trouble via using "marginal price pricing" to a natural monopoly firm is that A. the firm will still make excess earnings. B. the firm will charge a price greater than an unregulated monopoly. C. the firm will be allocatively ineffective. D. the firm will eventually go bankrupt.
Figure 1: This figure defines an eye clinic (firm) that has actually a monopoly in offering a brand-new kind of eye exam. The amount levels in the graph listed below refers to the variety of eye exams that the clinic deserve to provide per time period (per 5 minute period). The price, revenue, and also costs per exam (per unit) are additionally shown in the graph below.
14. Refer to Figure 1, above, to answer the following. Under the case of "single price monopoly" the profit maximizing amount level would certainly be A. 2 exams per time duration. B. 4 exams per time duration. C. 6 exams per time period. D. 8 exams per time period.
15. Refer to Figure 1, above, to answer the following. Under the instance of "single price monopoly," the profit maximizing price would certainly be A. $65 per exam. B. $60 per exam. C. $55 per exam. D. $50 per exam.
16. Refer to Figure 1, over, to answer the following. Under the situation of "single price monopoly" the total dollar amount of maximum profit would certainly be about (per time period) A. $40. B. $260. C. $20. D. $50.
17. Refer to Figure 1, above, to answer the following. Under the instance of "marginal price pricing regulation," the clinic would certainly administer what amount of exams per time period? A. 2 exams per time duration. B. 4 exams per time duration. C. 6 exams per time period. D. 8 exams per time period.
18. Refer to Figure 1, over, to answer the following. Under the situation of "marginal expense pricing regulation," the complete dollar amount of economic profit would be about (per time period) A. $60. B. $-60. C. $65. D. $zero financial profit.
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19. Refer to Figure 1, above, to answer the following. Under the situation of "average cost pricing regulation," the clinic would certainly charge what price per exam? A. $45 B. $50 C. $55 D. $60
20. Refer to Figure 1, over, to answer the complying with. Under the case of "perfect price discrimicountry," the profit maximizing amount would be A. 2 exams per time period. B. 4 exams per time duration. C. 6 exams per time period. D. 8 exams per time duration.