FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Monopoly Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Using a broad definition,a firm would have a monopoly if

A) it produced a product that has substitutes.
B) it does not have to collude with any other producer to earn an economic profit.
C) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
D) it can make decisions regarding price and output without violating antitrust laws.

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

A patent

A) grants the creator of a book,film,or piece of music the exclusive right to use the creation for 20 years.
B) grants the creator of a book,film,or piece of music the exclusive right to use the creation during the creator's lifetime.
C) gives a firm the exclusive right to a new product for 20 years from the date the product is invented.
D) gives the firm the exclusive right to a new product during the product inventor's lifetime.

E) A) and C)
F) B) and C)

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Relative to a perfectly competitive market,a monopoly results in

Which of the following is necessary in order for a firm to successfully practice price discrimination?

Figure 9-12 Figure 9-12 shows the cost and demand curves for the ETSA. -Refer to Figure 9-12.Why won't regulators require that ETSA Power produce the economically efficient output level?

The demand curve for the monopoly's product is

For a firm that can effectively price discriminate,who will be charged a lower price?

Both first-degree price discrimination and optimal two-part tariff pricing maximise economic surplus.

Figure 9-10 -Refer to Figure 9-10.What is the area that represents producer surplus under a monopoly?

Holding everything else constant,government approval of horizontal mergers is more likely to be granted if the 'market' that firms are in are broadly defined rather than narrowly defined.

Table 9-3 Julie plans to start a pet-sitting service.She surveyed her neighbourhood to determine the demand for this service.Assume that each person surveyed demands only one hour of pet sitting services per period.Table 9-3 above shows a portion of her survey results. -Refer to Table 9-3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7 per hour.What is her marginal revenue?

Consider the following actions undertaken by a firm: A.charging the same price for products of different quality B.charging different prices to different consumers for the same product when the variation cannot be explained by cost differences C.charging different prices for products of different qualities D.charging a lower price to match a competitor's price Which of the above will be considered price discrimination?

Figure 9-12 Figure 9-12 shows the cost and demand curves for the ETSA. -Refer to Figure 9-12.ETSA Power is a natural monopoly because

If a firm knew every consumer's willingness to pay and could prevent arbitrage,it could charge every consumer a different price.This practice is known as

Table 9-2 The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes.Table 9-2 shows the cost and demand data for this government protected monopolist. -Refer to Table 9-2.What is the profit-maximising quantity and price for the monopolist?

Figure 9-4 Figure 9-4 shows the demand and cost curves for a monopolist. -Refer to Figure 9-4.What is the profit-maximising/loss-minimising output level?

Suppose a restaurant is trying to determine how much to charge for a bowl of chili,and decides to run an experiment to see how much its customers are willing to pay by allowing them to set their own price for this menu item. a.Is charging a customer the price he or she is willing to pay for the bowl of chili an example of price discrimination? Briefly explain. b.What is it called when a firm knows every consumer's willingness to pay,and can charge every consumer a different price? What happens to consumer surplus in this situation?

Joss is a marketing consultant.Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report.Iris is willing to pay $500 for the service while Daphne is willing to pay $800.Suppose that the opportunity cost of Joss's time is $1200.Assume that Iris and Daphne do not know each other.If the price is $500 per copy,

A monopolist's profit-maximising price and output correspond to the point on a graph

The term 'trust' in antitrust refers to a board of trustees that has collusive control over different companies.