Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1
|
|
- Ariel Nancy Bennett
- 6 years ago
- Views:
Transcription
1 1) A monopoly is an industry with A) a single firm in which the entry of new firms is blocked. B) a small number of firms each large enough to impact the market price of its output. C) many firms each able to differentiate their product. D) many firms each too small to impact the market price of its output. 2) Resources are allocated efficiently when A) the market produces what people want. B) economic profits are zero. C) output is distributed in an equitable fashion. D) output is produced in a sustainable fashion. Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure ) Refer to Figure This firm is currently at Point A on the ATC curve. If this firm moves toward Point B, this will make the A) distribution of outcome more equitable. B) economy more stable. C) economy more efficient. D) economy less stable. 4) Under perfect competition, the efficient level of output is produced because A) government regulates the output level that must be produced. B) firms earn only a normal profit in the long run. C) firms can earn an economic profit in the long run. D) price equals marginal cost. 5) In perfect competition, the condition that ensures that the right things are produced is A) MUX = PX. B) P = MC. C) P = ATC. D) MRPL = ATC
2 6) Society will produce at a productive efficient output if all firms equate A) price and marginal cost. B) price and average total cost. C) marginal cost and average total cost. D) price and marginal revenue. 7) In a perfectly competitive market, productive efficiency is A) where P = MR B) where MR = D C) where P= ATC D) where P=minimum ATC 8) A firm must be able to competition if it is to exercise control over the price of its product. A) maximize B) increase C) not change D) limit 9) Imperfect competition A) means there is no competition in the market. B) results in less efficient market outcomes. C) should always be regulated by the government D) is a major cause of externalities in the market. 10) Which of the following is LEAST likely to be considered a firm in an imperfectly competitive industry? A) a Burger King in Pittsburgh, Pa. B) Ohio Bell Telephone Company C) a wheat farmer in Kansas D) the only locally owned and operated bank in Severn, MD. 11) Which of the following statements represents the best reason to study economics? A) You love studying Scarcity B) You feel your teacher needs a hair transplant C) You have nothing better to do with your time D) You feel that economists are the coolest people on earth
3 Refer to the information provided in Figure 13.1 below to answer the question that follows. Figure ) Refer to Figure The demand curve facing an individual producer of wheat is most likely represented by A) Panel A. B) Panel B. C) Panel C. D) Panel D. 13) Refer to Figure The demand curve facing an electric company is most likely represented by A) Panel A. B) Panel B. C) Panel C. D) Panel D. 14) Refer to Figure The demand curve facing Microsoft is most likely represented by A) Panel A. B) Panel B. C) Panel C. D) Panel D.
4 15) Refer to Figure The demand curve for insulin is most likely represented by A) Panel A. B) Panel B. C) Panel C. D) Panel D. 16) Monopolists differ from perfectly competitive firms A) on the cost and demand sides of the profit equation. B) on the cost side of the profit equation alone. C) on the demand side of the profit equation alone. D) on neither the cost nor demand sides of the profit equation. 17) Monopolists differ from perfectly competitive firms A) on the cost and demand sides of the profit equation. B) on the cost side of the profit equation alone. C) on the demand side of the profit equation alone. D) on neither the cost nor demand sides of the profit equation. 18) XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,600. The marginal revenue of the third color printer sold is A) $200. B) $300. C) $600. D) $1, ) For a monopolist to sell more units of output, A) the price must be increased. B) the price must be reduced. C) demand must become more elastic. D) the other competing firms must sell fewer units. 20) In a monopoly, the market demand curve is A) the same as the demand curve facing the firm. B) the summation of all the individual firm's cost curves. C) nonexistent. D) the marginal cost curve above minimum average variable cost. 21) For a monopoly, the marginal revenue curve has point(s) in common with the firm's linear demand curve. A) one B) no C) all D) Indeterminate from the given information.
5 22) For a perfectly competitive firm, the marginal revenue curve has point(s) in common with the firm's demand curve. A) one B) no C) all D) Indeterminate from the given information. 23) Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $600, and if it sells three calculators its total revenue is $750. The marginal revenue of the third calculator sold is A) $50. B) $75. C) $150. D) $ ) Stereo Sound Unlimited has a monopoly over the installation of surround sound systems. If Stereo Sound Unlimited's total revenue from installing 10 sound systems is $20,000 and its total revenue from installing 11 sound systems is $18,000, what is the marginal revenue of the eleventh sound system? A) -$2,000 B) -$1,000 C) $2,000 D) $3,800 25) Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000. The marginal revenue received from selling the 18th sound system is A) equal to the price of the 16th sound system. B) greater than the price of the 16th sound system. C) less than the price of the 16th sound system. D) Indeterminate from the given information.
6 Refer to the information provided in Figure 13.3 below to answer the questions that follow. Figure ) Refer to Figure The marginal revenue of the fourth pound of cheese is A) $1. B) $3. C) $6. D) $24. 27) Refer to Figure The marginal revenue of the sixth pound of cheese is A) -$4. B) -$1. C) $1. D) $4. 28) Refer to Figure This firm's total revenue will be maximized at a price of A) $8. B) $6. C) $5. D) $4. 29) Refer to Figure This firm's marginal revenue will be positive at A) prices above $5. B) prices below $5. C) all prices. D) prices between $4 and $8. 30) Refer to Figure This firm's marginal revenue will be negative at A) prices above $5. B) prices below $5. C) all prices. D) prices between $4 and $8.
7 31) The demand curve facing a monopolistic firm is. A) upward- sloping B) downward- sloping C) horizontal D) vertical 32) For a monopolist, price A) equals marginal revenue at all output levels. B) is less than marginal revenue. C) is greater than marginal revenue. D) can be greater than or less than marginal revenue. 33) When the demand curve is a downward sloping straight line, the slope of the marginal revenue curve is A) always equal to one. B) the same as the slope of the demand curve. C) half as steep as the demand curve. D) twice as steep as the demand curve. 34) For a monopolist, if total revenue increases as output decreases, then marginal revenue is A) equal to price. B) zero. C) positive. D) negative. 35) A monopolist will not produce A) a positive level of output when its marginal revenue is declining. B) a positive level of output when its price is less than average total cost but greater than average variable cost. C) in the inelastic portion of its demand curve, where marginal revenue is negative. D) in the perfectly competitive level of output when it engages in perfect price discrimination. 36) Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? The monopolist has A) maximized its total revenue. B) set price equal to its average cost. C) maximized the difference between marginal revenue and marginal cost. D) equated marginal revenue and marginal cost.
8 Refer to the information provided in Figure 13.5 below to answer the questions that follow. Figure ) Refer to Figure The profit-maximizing level of output for this monopolist is units of output. A) 20 B) 22 C) 24 D) 26 38) Refer to Figure The profit-maximizing price for this firm is A) $5. B) $7. C) $9. D) $11. 39) Refer to Figure If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be A) $0. B) $88. C) $154. D) $ ) The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to reduce output as long as marginal revenue A) is greater than marginal cost. B) equals marginal cost. C) is less than marginal cost. D) is positive.
9 41) Ameritech has a monopoly over local telephone service. If Ameritech is producing where marginal revenue is less than marginal cost, the firm A) could increase profits by reducing output. B) could increase profits by increasing output. C) is maximizing profits. D) must be earning a zero profit. 42) In the short run, when a monopolist incurs a loss, it will A) always shut down. B) always produce where marginal cost equals marginal revenue. C) produce as long as total revenue is sufficient to cover variable costs. D) produce as long as total revenue is sufficient to cover fixed costs. 43) In the long run, a monopoly A) will always earn zero economic profits. B) may earn positive economic profits due to entry barriers. C) will never exit the industry. D) will yield an efficient outcome. 44) A monopolist suffers a loss if its schedule is everywhere above its schedule. A) ATC; MC B) MC; AVC C) ATC; Demand D) Demand; ATC 45) A monopolist is NOT guaranteed positive economic profits solely because it is a monopoly since there may be no output for which A) TR = TVC. B) TR > TC. C) MC = MR. D) ATR < MR.
10 Refer to the information provided in Figure 13.6 below to answer the question that follows. Figure ) Refer to Figure The Silver Exchange has a monopoly over the sale of solid silver walking sticks. The Silver Exchange has hired you as an economic consultant. You should advise this monopolist to A) shut down in the short run and exit the industry in the long run. B) produce in the short run and expand capacity in the long run. C) produce in the short run but exit the industry in the long run. D) shut down in the short run but expand capacity in the long run.
11 Refer to the information provided in Figure 13.7 below to answer the question that follows. Figure ) Refer to Figure The profit-maximizing level of output for the Memory Company is high school yearbooks. A) 0 B) 200 C) 300 D) ) Refer to Figure The profit-maximizing price for the Memory Company's high school yearbook is A) $0. B) $9. C) $16. D) $20. 49) Refer to Figure The maximum profit level for the Memory Company is A) -$1,800. B) -$1,200. C) -$800. D) $0. 50) Relative to a competitively organized industry, a monopoly is more likely to produce A) more output, charges higher prices, and earns economic profits. B) less output, charges lower prices, and earns economic profits. C) less output, charges lower prices, and earns only a normal profit. D) less output, charges higher price, and earns economic profits.
12 51) A prevents new firms from entering and competing in a monopolistic industry. A) barrier to entry B) collusive agreement C) market power sharing agreement D) cartel agreement Refer to the information provided in Figure 13.8 below to answer the questions that follow. Figure ) Refer to Figure If the government regulates Armstrong Cable so they can earn only a normal return, the price would be set at A) $ B) $ C) $ D) $ ) Which type of barrier to entry allowed the electric company to maintain a monopoly over the production of electricity? A) a patent B) economies of scale C) diseconomies of scale D) ownership of a scarce factor of production 54) A barrier to entry that grants exclusive use of an invented product or process to the inventor is called. A) a government franchise B) a patent C) economies of scale D) the ownership of a scarce resource
13 55) When a firm's LRAC curve is still declining when it intersects the market demand curve, we call the firm a(n). A) perfect competitor B) monopolistic competitor C) oligopolist D) natural monopolist 56) An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n) monopoly. A) fixed cost B) economies of scale C) patent D) natural 57) It would be inefficient to break up a monopoly. A) government created B) price- fixing C) cartelized D) natural Refer to the information provided in Figure below to answer the questions that follow. Figure ) Refer to Figure If Armstrong Cable were free to sell to any number of subscribers it desires and set any price, it would sell to subscribers at a price of. A) 800; $15 B) 1,000; $16 C) 2,200; $13 D) 2,500; $12
14 59) Refer to Figure If Armstrong Cable is forced to sell the allocative efficient output or the social optimal output, it will A) incur a loss of $7,250. B) incur a loss of $1,250. C) earn a zero profit. D) earn a profit of $4, ) Refer to Figure If Armstrong Cable is forced to sell the productive efficient output or the fair return output, it will A) incur a loss of $7,250. B) incur a loss of $1,250. C) earn a zero profit. D) earn a profit of $4,000.
Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials
LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were
More informationChapter 10 Pure Monopoly
Chapter 10 Pure Monopoly Multiple Choice Questions 1. Pure monopoly means: A. any market in which the demand curve to the firm is downsloping. B. a standardized product being produced by many firms. C.
More informationCHAPTER NINE MONOPOLY
CHAPTER NINE MONOPOLY This chapter examines how a market controlled by a single producer behaves. What price will a monopolist charge for his output? How much will he produce? The basic characteristics
More information23 Perfect Competition
23 Perfect Competition Learning Objectives After you have studied this chapter, you should be able to 1. define price taker, total revenues, marginal revenue, short-run shutdown price, short-run breakeven
More informationPractice Exam 3: S201 Walker Fall with answers to MC
Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility
More informationECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions
www.liontutors.com ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions 1. A A large number of firms will be able to operate in the industry because you only need to produce a small amount
More informationPerfect competition: occurs when none of the individual market participants (ie buyers or sellers) can influence the price of the product.
Perfect Competition In this section of work and the next one we derive the equilibrium positions of firms in order to determine whether or not it is profitable for a firm to produce and, if so, what quantities
More informationFINALTERM EXAMINATION FALL 2006
FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.
More informationEcon 2113: Principles of Microeconomics. Spring 2009 ECU
Econ 2113: Principles of Microeconomics Spring 2009 ECU Chapter 12 Monopoly Market Power Market power is the ability to influence the market, and in particular the market price, by influencing the total
More informationShort run and long run price and output decisions of a monopoly firm,
1 Chapter 1-Theory of Monopoly Syllabus-Concept of imperfect competition, Short run and long run price and output decisions of a monopoly firm, Concept of a supply curve under monopoly, comparison of perfect
More informationChapter 13. Microeconomics. Monopolistic Competition: The Competitive Model in a More Realistic Setting
Microeconomics Modified by: Yun Wang Florida International University Spring, 2018 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Outline 13.1 Demand and
More informationAP Microeconomics Review Session #3 Key Terms & Concepts
The Firm, Profit, and the Costs of Production 1. Explicit vs. implicit costs 2. Short-run vs. long-run decisions 3. Fixed inputs vs. variable inputs 4. Short-run production measures: be able to calculate/graph
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Micro - HW 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In central Florida during the spring, strawberry growers are price takers. The reason
More informationChapter Summary and Learning Objectives
CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect
More informationECON 2100 Principles of Microeconomics (Summer 2016) Monopoly
ECON 21 Principles of Microeconomics (Summer 216) Monopoly Relevant readings from the textbook: Mankiw, Ch. 15 Monopoly Suggested problems from the textbook: Chapter 15 Questions for Review (Page 323):
More informationAt P = $120, Q = 1,000, and marginal revenue is ,000 = $100
Microeconomics, monopoly, final exam practice problems (The attached PDF file has better formatting.) *Question 1.1: Marginal Revenue Assume the demand curve is linear.! At P = $100, total revenue is $200,000.!
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Sample Test 3 Ch 10-13 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A cost incurred in the production of a good or service and for which
More informationMarket Structure & Imperfect Competition
In the Name of God Sharif University of Technology Graduate School of Management and Economics Microeconomics (for MBA students) 44111 (1393-94 1 st term) - Group 2 Dr. S. Farshad Fatemi Market Structure
More informationMonopoly. Cost. Average total cost. Quantity of Output
While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if... it is the sole seller of its product. its product does not have close substitutes. The
More informationECON 311 MICROECONOMICS THEORY I
ECON 311 MICROECONOMICS THEORY I Profit Maximisation & Perfect Competition (Short-Run) Dr. F. Kwame Agyire-Tettey Department of Economics Contact Information: fagyire-tettey@ug.edu.gh Session Overview
More informationPrinciples of Microeconomics Module 5.1. Understanding Profit
Principles of Microeconomics Module 5.1 Understanding Profit 180 Production Choices of Firms All firms have one goal in mind: MAX PROFITS PROFITS = TOTAL REVENUE TOTAL COST Two ways to reach this goal:
More informationINTERMEDIATE MICROECONOMICS LECTURE 13 - MONOPOLISTIC COMPETITION AND OLIGOPOLY. Monopolistic Competition
13-1 INTERMEDIATE MICROECONOMICS LECTURE 13 - MONOPOLISTIC COMPETITION AND OLIGOPOLY Monopolistic Competition Pure monopoly and perfect competition are rare in the real world. Most real-world industries
More informationa. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run
I. From Seminar Slides: 3, 4, 5, 6. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm (PC), a monopolistically competitive firm (MC), both, or neither.
More informationIntroduction. Learning Objectives. Chapter 24. Perfect Competition
Chapter 24 Perfect Competition Introduction Estimates indicate that since 2003, the total amount of stored digital data on planet Earth has increased from 5 exabytes to more than 200 exabytes. Accompanying
More information2010 Pearson Education Canada
What Is Perfect Competition? Perfect competition is an industry in which Many firms sell identical products to many buyers. There are no restrictions to entry into the industry. Established firms have
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) Consumers have the ability to buy everything
More informationThe "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market.
Chapter 16 Monopolistic Competition TRUE/FALSE 1. The "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market. ANS: T 2. The "monopoly" in monopolistically
More informationI enjoy teaching this class. Good luck and have a nice Holiday!!
ECON 202-501 Fall 2008 Xiaoyong Cao Final Exam Form A Instructions: The exam consists of 2 parts. Part I has 35 multiple choice problems. You need to fill the answers in the table given in Part II of the
More informationMonopoly CHAPTER. Goals. Outcomes
CHAPTER 15 Monopoly Goals in this chapter you will Learn why some markets have only one seller Analyze how a monopoly determines the quantity to produce and the price to charge See how the monopoly s decisions
More informationUnit 4: Imperfect Competition
Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique
More informationAGENDA Mon 10/12. Economics in Action Review QOD #21: Competitive Farming HW Review Pure Competition MR = MC HW: Read pp Q #7
AGENDA Mon 10/12 Economics in Action Review QOD #21: Competitive Farming HW Review Pure Competition MR = MC HW: Read pp 173-176 Q #7 QOD #21: Competitive Farming A purely competitive wheat farmer can sell
More informationUnit 4: Imperfect Competition
Unit 4: Imperfect Competition 1 FOUR MARKET STRUCTURES Perfect Competition Monopolistic Competition Oligopoly Pure Monopoly Imperfect Competition Every product is sold in a market that can be considered
More informationSlides and Images, Worth Publishers Inc. 8-1
Perfect Competition Michael J. Murray Slides and Images, Worth Publishers Inc. 8-1 Market Structure Analysis By observing a few industry characteristics, we can predict pricing and output behavior of the
More information2007 Thomson South-Western
WHAT IS A COMPETITIVE MARKET? A competitive market has many buyers and sellers trading identical products so that each buyer and seller is a price taker. Buyers and sellers must accept the price determined
More informationTeaching about Market Structures
Teaching about Market Structures Felix B. Kwan, Ph.D. Professor of Econ/Finance, Maryville University AP Econ Conference - FRB St. Louis June 17-19, 2015 Profits Foundational Concepts Some basic terms/concepts
More informationMonopoly and How It Arises
Monopoly and How It Arises A monopoly is a market: That produces a good or service for which no close substitute exists In which there is one supplier that is protected from competition by a barrier preventing
More informationMonopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we
Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we must criticize it a bit. Monopoly occurs when there is
More information6) The mailing must be postmarked by June 15. 7) If you have any questions please me at
Examination Instructions: 1) Answer the examination only after you have read the honesty pledge below. 2) The multiple choice section will be taken in WebCT and a tutorial for using WebCT is to be found
More informationVIII 1 TOPIC VIII: MONOPOLY AND OTHER INDUSTRY STRUCTURES. I. Monopoly - Single Firm With No Threat of Close Competition. Other Industry Structures
TOPIC VIII: MONOPOLY AND OTHER INDUSTRY STRUCTURES I. Monopoly - Single Firm With No Threat of Close Competition II. Other Industry Structures CONCEPTS AND PRINCIPLES MONOPOLY We now consider the opposite
More informationSection I (20 questions; 1 mark each)
Foundation Course in Managerial Economics- Solution Set- 1 Final Examination Marks- 100 Section I (20 questions; 1 mark each) 1. Which of the following statements is not true? a. Societies face an important
More informationiv. The monopolist will receive economic profits as long as price is greater than the average total cost
Chapter 15: Monopoly (Lecture Outline) -------------------------------------------------------------------------------------------------------------------------- Monopolies have no close competitors and,
More informationPerfect Competition CHAPTER 14. Alfred P. Sloan. There s no resting place for an enterprise in a competitive economy. Perfect Competition 14
CHATER 14 erfect Competition There s no resting place for an enterprise in a competitive economy. Alfred. Sloan McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
More informationEcon 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011
Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and
More informationA monopoly market structure is one characterized by a single seller of a unique product with no close substitutes.
These notes provided by Laura Lamb are intended to complement class lectures. The notes are based on chapter 12 of Microeconomics and Behaviour 2 nd Canadian Edition by Frank and Parker (2004). Chapter
More informationUnit 4: Imperfect Competition
Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique
More informationECON 251 Exam 2 Pink. Fall 2012
ECON 251 Exam 2 Pink Use the table below to answer the following four questions The table below shows Harry s total utility from consuming beer and wine. The price of beer is $2 per bottle. The price of
More informationMarket structures. Why Monopolies Arise. Why Monopolies Arise. Market power. Monopoly. Monopoly resources
Market structures Why Monopolies Arise Market power Alters the relationship between a firm s costs and the selling price Charges a price that exceeds marginal cost A high price reduces the quantity purchased
More informationChapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting
Economics 6 th edition 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall
More informationMICRO EXAM REVIEW SHEET
MICRO EXAM REVIEW SHEET 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return
More informationMonopoly CHAPTER 15. Henry Demarest Lloyd. Monopoly is business at the end of its journey. Monopoly 15. McGraw-Hill/Irwin
CHAPTER 15 Monopoly Monopoly is business at the end of its journey. Henry Demarest Lloyd McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved. A Monopolistic Market A
More informationChapter 10: Monopoly
Chapter 10: Monopoly Answers to Study Exercise Question 1 a) horizontal; downward sloping b) marginal revenue; marginal cost; equals; is greater than c) greater than d) less than Question 2 a) Total revenue
More informationShort-Run Costs and Output Decisions
Semester-I Course: 01 (Introductory Microeconomics) Unit IV - The Firm and Perfect Market Structure Lesson: Short-Run Costs and Output Decisions Lesson Developer: Jasmin Jawaharlal Nehru University Institute
More informationChapter 7: Market Structures Section 2
Chapter 7: Market Structures Section 2 Objectives 1. Describe characteristics and give examples of a monopoly. 2. Describe how monopolies, including government monopolies, are formed. 3. Explain how a
More informationMICROECONOMICS CHAPTER 10A/23 PERFECT COMPETITION. Professor Charles Fusi
MICROECONOMICS CHAPTER 10A/23 PERFECT COMPETITION Professor Charles Fusi Learning Objectives Identify the characteristics of a perfectly competitive market structure Discuss the process by which a perfectly
More informationCOST OF PRODUCTION & THEORY OF THE FIRM
MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM One of the concepts mentioned in both Units I and II was and its components, total cost and total revenue. In this unit, costs and revenue
More information8 Perfect Competition
8 Perfect Competition CHAPTER 8 PERFECT COMPETITION 167 Figure 8.1 Depending upon the competition and prices offered, a wheat farmer may choose to grow a different crop. (Credit: modification of work by
More informationMonopoly. While a competitive firm is a price taker, a monopoly firm is a price maker.
Monopoly Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. Monopoly A firm is considered a monopoly if... it is the sole seller of its product. its product does not
More informationContents. Concepts of Revenue I-13. About the authors I-5 Preface I-7 Syllabus I-9 Chapter-heads I-11
Contents About the authors I-5 Preface I-7 Syllabus I-9 Chapter-heads I-11 1 Concepts of Revenue 1.1 Introduction 1 1.2 Concepts of Revenue 2 1.3 Revenue curves under perfect competition 3 1.4 Revenue
More informationThe above Figure 1 shows the demand and cost curves facing a monopolist.
Practice 13&14 1) The key characteristics of a monopolistically competitive market structure include A) few sellers. B) sellers selling similar but differentiated products. C) high barriers to entry. D)
More informationMonopoly. Chapter 15
Monopoly Chapter 15 Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. Monopoly u A firm is considered a monopoly if... it is the sole seller of its product. its product
More information13 C H A P T E R O U T L I N E
PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER Prepared by: Fernando Quijano w/shelly Tefft 2of 37 PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT Monopoly
More informationCHAPTER 8 Competitive Firms and Markets
CHAPTER 8 Competitive Firms and Markets CHAPTER OUTLINE 8.1 Competition Price Taking Why the Firm s Demand Curve Is Horizontal Why We Study Competition 8.2 Profit Maximization Profit Two Steps to Maximizing
More informationChapter Eleven. Monopoly
Chapter Eleven Monopoly Topics Monopoly Profit Maximization. Effects of a Shift of the Demand Curve. Market Power. Welfare Effects of Monopoly. Cost Advantages That Create Monopolies. Government Actions
More informationModule 67: Introduction to Monopolisitic Competition
Module 67: Introduction to Monopolisitic Competition Schmidty School of Economics Learning Targets I Can Key Economic Concepts For This Module: Firms in monopolistic competition have downward sloping demand
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Review 10-14-15 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1. The four-firm concentration ratio equals the percentage of the value of accounted
More informationECON December 4, 2008 Exam 3
Name Portion of ID# Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. 1. A fundamental source of monopoly market power arises from a. perfectly
More informationECON 260 (2,3) Practice Exam #4 Spring 2007 Dan Mallela
ECON 260 (2,3) Practice Exam #4 Spring 2007 Dan Mallela Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is defined as a. net revenue
More informationUse the following to answer question 4:
Homework Chapter 11: Name: Due Date: Wednesday, December 4 at the beginning of class. Please mark your answers on a Scantron. It is late if your Scantron is not complete when I ask for it at 9:35. Get
More informationPrinciples of Economics Final Exam. Name: Student ID:
Principles of Economics Final Exam Name: Student ID: 1. In the absence of externalities, the "invisible hand" leads a competitive market to maximize (a) producer profit from that market. (b) total benefit
More information2) All combinations of capital and labor along a given isoquant cost the same amount.
Micro Problem Set III WCC Fall 2014 A=True / B=False 15 Points 1) If MC is greater than AVC, AVC must be rising. 2) All combinations of capital and labor along a given isoquant cost the same amount. 3)
More informationEco201 Review questions for chapters Prof. Bill Even ====QUESTIONS FOR CHAPTER 13=============================
Eco201 Review questions for chapters 13-15 Prof. Bill Even ====QUESTIONS FOR CHAPTER 13============================= 1) A monopoly has two key features, which are. A) barriers to entry and close substitutes
More informationChapter 13 MODELS OF MONOPOLY. Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 13 MODELS OF MONOPOLY Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 1 Monopoly A monopoly is a single supplier to a market This firm may choose to produce
More informationAP Microeconomics Chapter 10 Outline
I. Learning Objectives In this chapter students should learn: A. How the long run differs from the short run in pure competition. B. Why profits encourage entry into a purely competitive industry and losses
More informationECON 251 Practice Exam 2 Questions from Fall 2013 Exams
ECON 251 Practice Exam 2 Questions from Exams Gordon spends all his income on spatulas and mixing bowls. Spatulas cost $4 and mixing bowls cost $12. Gordon has $60 of income and considers both spatulas
More informationAP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
More informationGraded exercise questions. Level (I, ii, iii)
Graded exercise questions Level (I, ii, iii) 248 MICRO ECONOMICS LEVEL 1 GRADED EXERCISE QUESTIONS (LEVEL I, II, III) INTRODUCTION 1. Why does an economic problem arise? 2. What is economics about? 3.
More informationECO 610: Lecture 7. Perfectly Competitive Markets
ECO 610: Lecture 7 Perfectly Competitive Markets Perfectly Competitive Markets: Outline Goal: understanding firm and market supply in competitive markets Characteristics of perfectly competitive industries
More informationMONOPOLY. Characteristics
OBJECTIVES Explain how managers should set price and output when they have market power With monopoly power, the firm s demand curve is the market demand curve. A monopolist is the only seller of a product
More informationMonopolistic Competition
Monopolistic Competition CHAPTER16 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Describe and identify monopolistic competition. 2 Explain how
More informationCONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37
CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply 17 3 Elasticities 37 4 Government Intervention in Markets 44 5 Market Failure 53 6 Costs of
More informationSupply in a Competitive Market
Supply in a Competitive Market 8 Introduction 8 Chapter Outline 8.1 Market Structures and Perfect Competition in the Short Run 8.2 Profit Maximization in a Perfectly Competitive Market 8.3 Perfect Competition
More informationAP Microeconomics Chapter 11 Outline
I. Learning Objectives In this chapter students should learn: A. The characteristics of pure monopoly. B. How a pure monopoly sets its profit-maximizing output and price. C. The economic effects of monopoly.
More informationMonopolistic Competition. Chapter 17
Monopolistic Competition Chapter 17 The Four Types of Market Structure Number of Firms? Many firms One firm Few firms Differentiated products Type of Products? Identical products Monopoly Oligopoly Monopolistic
More informationChapter 28 The Labor Market: Demand, Supply, and Outsourcing
Chapter 28 The Labor Market: Demand, Supply, and Outsourcing Learning Objectives After you have studied this chapter, you should be able to 1. define marginal factor cost, marginal physical product of
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2
Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose
More informationPerfect Competition and The Supply Curve
chapter: 13 >> Perfect Competition and The Supply Curve The following materials are taken from Chap. 13, Economics, 2 nd ed., Krugman and Wells(2009), Worth Palgrave MaCmillan. 2009 Worth Publishers 1
More informationOligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry s output.
Topic 8 Chapter 13 Oligopoly and Monopolistic Competition Econ 203 Topic 8 page 1 Oligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry
More informationThe Competitive Model in a More Realistic Setting
CHAPTER 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Summary and Learning Objectives 13.1 Demand and Marginal Revenue for a Firm in a Monopolistically Competitive
More informationCHAPTER 8. Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
CHAPTER 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets CHAPTER OUTLINE Perfect competition Demand at the market and firm levels Short-run output decisions Long-run decisions
More informationQuestion Paper Business Economics I (MB1B3): January 2009
Question Paper Business Economics I (MB1B3): January 2009 Answer all 78 questions. Marks are indicated against each question. 1. Which of the following is not responsible for an increase in demand for
More information8 CHAPTER OUTLINE Costs in the Short Run Fixed Costs
e PART II I The Market System: Choices Made by Households and Firms e CASE FAIR OSTER PEARSON 2012 Pearson Education, Inc. Publishing as Prentice Hall PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I
More informationEcon Microeconomic Analysis and Policy
ECON 500 Microeconomic Theory Econ 500 - Microeconomic Analysis and Policy Monopoly Monopoly A monopoly is a single firm that serves an entire market and faces the market demand curve for its output. Unlike
More informationIntroduction. Learning Objectives. Learning Objectives. Economics Today Twelfth Edition. Chapter 24 Monopoly
Roger LeRoy Miller Economics Today Twelfth Edition Chapter 24 Monopoly Introduction The cement market in Mexico is dominated by a single company that accounts for more than 70 percent of all sales. Why
More informationExtra Credit. Student:
Extra Credit Student: 1. A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its supply curve for house windows to be: A. Dependent
More informationCASE FAIR OSTER PEARSON 2012 Pearson Education, Inc. Publishing as Prentice Hall
PART II The Market System: Choices Made by Households and Firms PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON 2012 Pearson Education, Inc. Publishing as Prentice Hall
More informationChapter 6. Competition
Chapter 6 Competition Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1-1 Chapter 6 The goal of this
More informationMicroeonomics. Firms in Competitive Markets. In this chapter, look for the answers to these questions: Introduction: A Scenario. N.
C H A T E R 14 Firms in Competitive Markets R I N C I L E S O F Microeonomics N. Gregory Mankiw remium oweroint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights reserved
More informationJacob: W hat if Framer Jacob has 10% percent of the U.S. wheat production? Is he still a competitive producer?
Microeconomics, Module 7: Competition in the Short Run (Chapter 7) Additional Illustrative Test Questions (The attached PDF file has better formatting.) Updated: June 9, 2005 Question 7.1: Pricing in a
More informationTEST 3 J. Spraggon Student Number: November 21, 2003
Econ 1100 Name: TEST 3 J. Spraggon Student Number: November 21, 2003 This test consists of 9 pages, containing 42 multiple-choice questions. There will be 1 mark for each of the multiple choice questions.
More informationTotal Costs. TC = TFC + TVC TFC = Fixed Costs. TVC = Variable Costs. Constant costs paid regardless of production
AP Microeconomics Total Costs TC = TFC + TVC TFC = Fixed Costs Constant costs paid regardless of production TVC = Variable Costs Costs that vary as production is changed Cost TFC TVC TFC Output Profit
More information