Question 1 (1 point) A monopolistic competitor faces ____________ demand curve.
ID: 1098614 • Letter: Q
Question
Question 1 (1 point) A monopolistic competitor faces ____________ demand curve. Question 1 options: an upward-sloping a horizontal a vertical a downward-sloping an unknown A monopolistic competitor faces ____________ demand curve. A monopolistic competitor faces ____________ demand curve. an upward-sloping a horizontal a vertical a downward-sloping an unknown an upward-sloping a horizontal a vertical a downward-sloping an unknown Of the sources of market power, the most common and enduring is Question 2 options: a patent. a copyright. exclusive ownership of an input. a government franchise. economies of scale. Of the sources of market power, the most common and enduring is Of the sources of market power, the most common and enduring is a patent. a copyright. exclusive ownership of an input. a government franchise. economies of scale. a patent. a copyright. exclusive ownership of an input. a government franchise. economies of scale. Economies of scale exist when Question 3 options: constant returns to scale are present. input prices are falling. average cost falls as the scale of production grows. a 10% increase in all inputs causes a 9% increase in output. firms become extremely large. Economies of scale exist when Economies of scale exist when constant returns to scale are present. input prices are falling. average cost falls as the scale of production grows. a 10% increase in all inputs causes a 9% increase in output. firms become extremely large. constant returns to scale are present. input prices are falling. average cost falls as the scale of production grows. a 10% increase in all inputs causes a 9% increase in output. firms become extremely large. $100. $200. $300. $400. $500. $100. $200. $300. $400. $500. An imperfectly competitive firm is one Question 5 options: that attempts to compete perfectly, but fails. with complete control over how much it produces. with the ability to set its price at any level it wishes. that possesses some degree of control over its price. that faces perfectly inelastic demand. An imperfectly competitive firm is one An imperfectly competitive firm is one that attempts to compete perfectly, but fails. with complete control over how much it produces. with the ability to set its price at any level it wishes. that possesses some degree of control over its price. that faces perfectly inelastic demand. that attempts to compete perfectly, but fails. with complete control over how much it produces. with the ability to set its price at any level it wishes. that possesses some degree of control over its price. that faces perfectly inelastic demand. the monopolist will make an even larger profit than when it was unregulated. the government will impose a higher tax on the monopolist. the monopolist will make a smaller profit than when it was unregulated. consumer surplus will decrease. new firms will enter the market. the monopolist will make an even larger profit than when it was unregulated. the government will impose a higher tax on the monopolist. the monopolist will make a smaller profit than when it was unregulated. consumer surplus will decrease. new firms will enter the market. Suppose that a firm is collecting $100 in total revenue when it sells 10 units and $99 in total revenue when it sells 11 units. The firm is a(n) Question 7 options: pure monopolist. oligopolist. perfect competitor. imperfect competitor. monopolistic competitor. Suppose that a firm is collecting $100 in total revenue when it sells 10 units and $99 in total revenue when it sells 11 units. The firm is a(n) Suppose that a firm is collecting $100 in total revenue when it sells 10 units and $99 in total revenue when it sells 11 units. The firm is a(n) pure monopolist. oligopolist. perfect competitor. imperfect competitor. monopolistic competitor. pure monopolist. oligopolist. perfect competitor. imperfect competitor. monopolistic competitor. A monopolist sets its price at $100 and offers a 10% rebate. For this to be a perfect hurdle, it must be the case that Question 8 options: everyone takes advantage of the rebate. those with a reservation price of $90 do not make a purchase. no one takes advantage of the rebate. those with a reservation price of $100 make the purchase and claim the rebate. those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate. A monopolist sets its price at $100 and offers a 10% rebate. For this to be a perfect hurdle, it must be the case that A monopolist sets its price at $100 and offers a 10% rebate. For this to be a perfect hurdle, it must be the case that everyone takes advantage of the rebate. those with a reservation price of $90 do not make a purchase. no one takes advantage of the rebate. those with a reservation price of $100 make the purchase and claim the rebate. those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate. everyone takes advantage of the rebate. those with a reservation price of $90 do not make a purchase. no one takes advantage of the rebate. those with a reservation price of $100 make the purchase and claim the rebate. those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate. force the monopolist to accept losses. impose a higher tax on the monopolist. subsidize the monopolist. increase consumer surplus. increase production of the good in question. force the monopolist to accept losses. impose a higher tax on the monopolist. subsidize the monopolist. increase consumer surplus. increase production of the good in question. Market power refers to a firm's ability to Question 10 options: undercut the price of rivals in order to capture the entire market. ignore environmental regulations. resist unionization efforts by workers. charge any price it wants. raise price without losing 100% of its sales. Market power refers to a firm's ability to Market power refers to a firm's ability to undercut the price of rivals in order to capture the entire market. ignore environmental regulations. resist unionization efforts by workers. charge any price it wants. raise price without losing 100% of its sales. undercut the price of rivals in order to capture the entire market. ignore environmental regulations. resist unionization efforts by workers. charge any price it wants. raise price without losing 100% of its sales. Which of the following statements is FALSE? Question 11 options: To sell more, a price setter must lower price. A price taker must charge the market price. If a price setter raises price, they will sell less. A price taker's revenue will rise if they sell more. Price setters can sell any quantity at any price. Which of the following statements is FALSE? Which of the following statements is FALSE? To sell more, a price setter must lower price. A price taker must charge the market price. If a price setter raises price, they will sell less. A price taker's revenue will rise if they sell more. Price setters can sell any quantity at any price. To sell more, a price setter must lower price. A price taker must charge the market price. If a price setter raises price, they will sell less. A price taker's revenue will rise if they sell more. Price setters can sell any quantity at any price. Perfect competition maximized total economic surplus and monopoly does not, because in perfect competition __________ while in monopoly __________. Question 12 options: P = MC; P > MC P < MR; P = MR P = MR; P < MR P = MC; P < MC P = MR; P = MC Perfect competition maximized total economic surplus and monopoly does not, because in perfect competition __________ while in monopoly __________. Perfect competition maximized total economic surplus and monopoly does not, because in perfect competition __________ while in monopoly __________. P = MC; P > MC P < MR; P = MR P = MR; P < MR P = MC; P < MC P = MR; P = MC P = MC; P > MC P < MR; P = MR P = MR; P < MR P = MC; P < MC P = MR; P = MC The profit-maximizing rule MR = MC applies to Question 13 options: all firms. monopolists only. perfect competitors only. monopolistic competitors only. both pure monopolists and perfect competitors. The profit-maximizing rule MR = MC applies to The profit-maximizing rule MR = MC applies to all firms. monopolists only. perfect competitors only. monopolistic competitors only. both pure monopolists and perfect competitors. all firms. monopolists only. perfect competitors only. monopolistic competitors only. both pure monopolists and perfect competitors. $24. $8. $6. $4. $2. $24. $8. $6. $4. $2. -$1. $14. $23. $26. $45. -$1. $14. $23. $26. $45.an upward-sloping a horizontal a vertical a downward-sloping an unknown
Explanation / Answer
A monopolistic competitor faces ____________ demand curve.
Question 1 options:
an upward-sloping
a horizontal
a vertical
a downward-sloping
an unknown
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Question 2 (1 point)
Of the sources of market power, the most common and enduring is
Question 2 options:
a patent.
a copyright.
exclusive ownership of an input.
a government franchise.
economies of scale.
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Question 3 (1 point)
Economies of scale exist when
Question 3 options:
constant returns to scale are present.
input prices are falling.
average cost falls as the scale of production grows.
a 10% increase in all inputs causes a 9% increase in output.
firms become extremely large.
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Question 4 (1 point)
Refer to the graph above. A profit-maximizing monopolist would earn total profit of
Question 4 options:
$100.
$200.
$300.
$400.
$500.
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Question 5 (1 point)
An imperfectly competitive firm is one
Question 5 options:
that attempts to compete perfectly, but fails.
with complete control over how much it produces.
with the ability to set its price at any level it wishes.
that possesses some degree of control over its price.
that faces perfectly inelastic demand.
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Question 6 (1 point)
Refer to the diagram above. Assume that this is an essential service and that the regulator sets a price where price equals marginal cost. Then, the most likely outcome is that
Question 6 options:
the monopolist will make an even larger profit than when it was unregulated.
the government will impose a higher tax on the monopolist.
the monopolist will make a smaller profit than when it was unregulated.
consumer surplus will decrease.
new firms will enter the market.
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Question 7 (1 point)
Suppose that a firm is collecting $100 in total revenue when it sells 10 units and $99 in total revenue when it sells 11 units. The firm is a(n)
Question 7 options:
pure monopolist.
oligopolist.
perfect competitor.
imperfect competitor.
monopolistic competitor.
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Question 8 (1 point)
A monopolist sets its price at $100 and offers a 10% rebate. For this to be a perfect hurdle, it must be the case that
Question 8 options:
everyone takes advantage of the rebate.
those with a reservation price of $90 do not make a purchase.
no one takes advantage of the rebate.
those with a reservation price of $100 make the purchase and claim the rebate.
those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate.
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Question 9 (1 point)
Refer to the diagram above. Assume that the regulator sets price where price equals marginal cost. Then, the government must be prepared to
Question 9 options:
force the monopolist to accept losses.
impose a higher tax on the monopolist.
subsidize the monopolist.
increase consumer surplus.
increase production of the good in question.
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Question 10 (1 point)
Market power refers to a firm's ability to
Question 10 options:
undercut the price of rivals in order to capture the entire market.
ignore environmental regulations.
resist unionization efforts by workers.
charge any price it wants.
raise price without losing 100% of its sales.
Save
Question 11 (1 point)
Which of the following statements is FALSE?
Question 11 options:
To sell more, a price setter must lower price.
A price taker must charge the market price.
If a price setter raises price, they will sell less.
A price taker's revenue will rise if they sell more.
Price setters can sell any quantity at any price.
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Question 12 (1 point)
Perfect competition maximized total economic surplus and monopoly does not, because in perfect competition __________ while in monopoly __________.
Question 12 options:
P = MC; P > MC
P < MR; P = MR
P = MR; P < MR
P = MC; P < MC
P = MR; P = MC
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Question 13 (1 point)
The profit-maximizing rule MR = MC applies to
Question 13 options:
all firms.
monopolists only.
perfect competitors only.
monopolistic competitors only.
both pure monopolists and perfect competitors.
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Question 14 (1 point)
Refer to the table above. The marginal revenue of selling the third unit is
Question 14 options:
$24.
$8.
$6.
$4.
$2.
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Question 15 (1 point)
Refer to the table above. Assuming the monopolist does not price-discriminate, then, at the point of profit maximization, the firm will earn a profit of
Question 15 options:
-$1.
$14.
$23.
$26.
$45.