江西財經(jīng)大學(xué)微觀經(jīng)濟學(xué)試題庫

Microeconomics9e(Parkin)Chapter13MonopolyMonopolyandHowitArisesAmonopolyhastwokeyfeatures,whichare.barrierstoentryandnoclosesubstitutesfranchisesandbarrierstoentrybarrierstoentryandclosesubstitutesclosesubstitutesandnobarrierstoentryAnswer:ATopic:HowMonopolyArisesSkill:RecognitionAACSB:ReflectiveThinkingAmonopolyisbestdefinedasafirmthatproducesagoodorservicefbrwhichnoclosesubstituteexistsandwhichisprotectedbyabarrierthatpreventsotherfirmsfromsellingthatgoodorservice.purchasesitsresourcesfromonlyonesupplierbecauseofabarrierpreventingitfrombuyingfromotherducesagoodorservicefbrwhichnoclosesubstituteexistsandthatsellsallitsoutputtoonebuyerbecausethereisbarrierpreventingotherbuyersfrompurchasingthegoodorservice.cannotcontrolthepriceitsetsforitsgoodorservicebecausethereisbarrierthatpreventsthefirmfromchangingtheprice.Answer:ATopic:HowMonopolyArisesSkill:RecognitionAACSB:ReflectiveThinkingThefollowingarekeyfeaturesofamonopolyEXCEPTthemonopolyisprotectedbyabarriertoentry.noclosesubstitutesexistfbrthegoodorservice.themonopolyhasastronginfluenceoverthepriceofthegoodorservice.themonopolyhasseverediseconomiesofscale.Answer:DTopic:HowMonopolyArisesSkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisNOTacharacteristicofamonopoly?asinglefirmnoclosesubstitutesfortheproductproducedbarrierstoentryeasyentryandexitAnswer:DTopic:HowMonopolyArisesSkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisacharacteristicofamonopoly?afewsmallfirmseasyentryandexitnobarrierstoentryasinglefirminthemarketAnswer:DTopic:HowMonopolyArisesSkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisacharacteristicofmonopoly?Thefirmfacescompetitionfrommanyotherfirms.Thefirmproducesaproductthathasmanyclosesubstitutes.Therearebarrierstoenterthemarket.Thefirm'sdemandcurveisperfectlyelastic.Answer:CTopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingWhichofthefollowingstatementsaboutamonopolyisFALSE?Monopolieshavenobarrierstoentryorexit.Thegoodproducedbyamonopolyhasnoclosesubstitutes.Amonopolyistheonlyproducerofthegood.Noneoftheabove;thatis,alloftheaboveanswersaretruestatementsaboutamonopoly.Answer:ATopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingAnexampleofamonopolyisabigcityrestaurant.thestockmarket.theonlyveterinarianinanisolatedfarmcommunity.alargehospitalinabigcity.Answer:CTopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingWhichofthefollowingfirmsismostlikelytobeamonopoly?localrestaurantlocaldistributorofwaterlocalbookstoreclothingstoreAnswer:BTopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingAnexampleofamonopolywouldbeoneofmanyU.S.wheatfarmers.oneofthefewU.S.automakers.AT&Tlongdistancephoneservice.thelocalwatercompany.Answer:DTopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingWhichofthefollowingisLEASTlikelytobeamonopoly?theholderofapublicfranchiseapharmaceuticalcompanywithapatentonadrugastoreinalargeshoppingmalltheownerofanoccupationallicenseAnswer:CTopic:HowMonopolyArisesSkill:ConceptualAACSB:ReflectiveThinkingAbarriertoentryisanaturalorlegalimpedimentthatmakesitdifficultfornewfirmstoenteramarket.anecessaryconditionforperfectcompetition.theresultofhighlyelasticdemand.abrickwallthatafirmplacesarounditscorporateheadquarters.Answer:ATopic:BarriersToEntrySkill:RecognitionAACSB:ReflectiveThinkingWhennaturalorlegalforcesworktoprotectafirmfrompotentialcompetitors,themarketissaidtohave.non-competitivesupplynon-competitiveentrybarrierstoentryrestrictedcompetitionAnswer:CTopic:BarriersToEntrySkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisabarriertoentryforamonopoly?apatentseverediseconomiesofscaleclosesubstitutesforthegoodorserviceexistAlloftheaboveanswersarecorrect.Answer:ATopic:BarriersToEntrySkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingcancreateamonopoly?highpricespublicfranchisepatentgovernment licenseIandIIIandIIII,IIandHID)II,IIIandIVAnswer:DTopic:BarriersToEntrySkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisNOTabarriertoentryforamonopoly?economiesofscalefortherelevantrangeofoutputapatentontheproductbeingsoldtheabilitytochargeapricethatisabovemarginalcostreceivingagovernmentauthorizedmonopolyAnswer:CTopic:BarriersToEntrySkill:ConceptualAACSB:ReflectiveThinkingWhenDeBeersmonopolizedtheworld'sdiamondsupply,itwasabletodosobecauseitA)hasagovernmentlicense.isapublicfranchise.ownsvirtuallyallofakeyresource.isapricesetter.Answer:CTopic:BarriersToEntrySkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingisNOTalegalbarriertoentry?publicfranchisegovernmentlicensepatentinnovationAnswer:DTopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingAlegalmonopolyisdefinedasamarketwhereonlyonelawyeroperates.alegalbarriertoentryexists.onlyonefirmcouldearnaprofit.entryandexitarelegal.Answer:BTopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingApublicfranchiseisanexclusiverightgrantedtoafirmtosupplyagoodorservice.agovernmentissuedlicenserequiredtopracticeaprofession.anexclusiverightgrantedtoaninventorofaproduct.auniquesourceofrawmaterials.Answer:ATopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingAmarketinwhichcompetitionandentryarerestrictedbythegrantingofapublicfranchise,governmentlicense,patent,orcopyrightiscalledalegalmonopoly.naturalmonopoly.single-pricemonopoly.price-discriminatingmonopoly.Answer:ATopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingPublicfranchisescreatemonopoliesbyfit.Answer:CTopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingGrantingapublicfranchise.createsalegalmonopolystimulatescompetitionintheartscreatesanaturalmonopolyreducespricesAnswer:ATopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingAcopyrightcreatesamonopolybyrestricting.thepricesthatcanbechargeddemandfortheproductentryintothemarketthenumberofcreatorsandinventorsAnswer:CTopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingApatentcreatesamonopolybyrestricting.demandfortheproductthenumberofcomplementsfortheproducttheamountofadvertisingthatcanbeundertakenentryintothemarketAnswer:DTopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingPatentsencourageinventionbyofferingsubsidiestoinventors.offeringtaxbreakstoinventors.preventingothersfromcopyinganinvention.preventinginventorsfromworkingonthesameproject.Answer:CTopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingSupposeanewvaccineforLymediseaseisdevelopedbyMerck,alargedrugcompany.Whichofthefollowingismostlikelytooccur?Merckwillapplyforapatentonthevaccinethatgrantsitthemonopolyrightstothevaccineformanyyears.Merckwillhaveamonopolyonthisvaccinebecauseofeconomiesofscale.Otherfirmswillquicklycopytheformulamakingthemarketforthevaccineperfectlycompetitive.Merckwillnottellanyoneaboutthisbreakthrough.Answer:ATopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingPatentsencourageinventionsbecausewithoutapatentotherfirmscouldentertheinventor'smarketbyproducingthesameproduct.nobodywoulddemandtheinventor'sproduct.theinventorwouldreceivenotaxbreaks.allmarketswouldbepublicfranchises.Answer:ATopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingIfthegovernmentgrantsafirmapublicfranchisetosupplycoal,amonopolyiscreatedbyA)anaturalbarriertoentry.alegalbarriertoentry.pricediscrimination.Alloftheaboveanswersarecorrect.Answer:BTopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingApatentgrantsaguaranteeofqualitytoconsumers.therighttopracticeaprofession.anexclusiverighttoaninventorofaproduct.controloverauniquesourceorsupplyofrawmaterials.Answer:CTopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingPatentscreatemonopoliesbyfit.Answer:CTopic:LegalBarrierstoEntrySkill:ConceptualAACSB:ReflectiveThinkingPatentsarebarrierstoentryandpublicfranchisesarebarrierstoentry.legal;legallegal;naturalnatural;legalnatural;naturalAnswer:ATopic:LegalBarrierstoEntrySkill:RecognitionAACSB:ReflectiveThinkingAnindustryinwhichonefirmcansupplytheentiremarketatalowerpricethancantwoormorefirmsiscalledalegalmonopoly.naturalmonopoly.single-pricemonopoly.price-discriminatingmonopoly.Answer:BTopic:NaturalMonopolySkill:RecognitionAACSB:ReflectiveThinkingTheexistenceofeconomiesofscalecreates.anaturalmonopolyagovernmentmonopolyalegalmonopolyamarketinwhichmanyfirmsmakeidenticalproductsAnswer:ATopic:NaturalMonopolySkill:RecognitionAACSB:ReflectiveThinkingNaturalmonopoliesoccurwhentherearelargediseconomiesofscale.externaleconomies.largeeconomiesofscale.naturalresourcesinvolved.Answer:CTopic:NaturalMonopolySkill:RecognitionAACSB:ReflectiveThinkingAnaturalmonopolyisdefinedasamarketinwhichcompetitionandentryarerestrictedbythegrantingofagovernmentlicense.anindustryinwhichonefirmcansupplytheentiremarketatalowerpricethantwoormorefirms.amarketinwhichcompetitionandentryarerestrictedbythegrantingofapatent.anymarketwhereonefirmconstitutestheentireindustry.Answer:BTopic:NaturalMonopolySkill:RecognitionAACSB:ReflectiveThinkingIfonecableTVcompanycanserveitscustomersataloweraveragecostthancantwocompanies,thenthiscompanyisanaturalmonopoly.notamonopoly.amonopoly,butnotanaturalmonopoly.alegalmonopoly.Answer:ATopic:NaturalMonopolySkill:ConceptualAACSB:ReflectiveThinkingAnaturalmonopolyisnotprotectedbyanybarriertoentry.existsbecauseoflegalbarrierstoentry.isanindustryinwhicheconomiesofscaleexistatthelevelofoutputwherethemarketdemandcurveintersectsthelong-runaveragecostcurve.isanindustrywheretwoormoresmallerfirmscansupplythemarketatalowercostthanonebigfirmcould.Answer:CTopic:NaturalMonopolySkill:RecognitionAACSB:ReflectiveThinkingWhichofthefollowingistrueofanaturalmonopoly?Itslong-runaveragecostcurveslopesupwardasitintersectsthedemandcurve.Economiesofscaleexisttoonlyaverylowlevelofoutput.Thefirmcansupplytheentiremarketatalowercostthancouldtwoormorefirms.Thefirmisnotprotectedbyanybarriertoentry.Answer:CTopic:NaturalMonopolySkill:ConceptualAACSB:ReflectiveThinkingUnregulatedmonopoliestakethemarketpriceasgiven.cannotincorporate.cannotchangethemarketquantity.caninfluencethemarketquantityandprice.Answer:DTopic:MonopolyPrice-SettingStrategiesSkill:RecognitionAACSB:ReflectiveThinkingAsingle-pricemonopolychargesthesamepriceevenifthedemandcurveshifts.evenifitscostcurvesshift.toallcustomers.atalltimesandthatpriceequalsthefirm'smarginalrevenue.Answer:CTopic:MonopolyPrice-SettingStrategiesSkill:ConceptualAACSB:ReflectiveThinkingWhenDominantPizzaiswillingtosellapizzatoastudentwholiveson-campusatalowerpricethanitiswillingtoselltheidenticalpizzatoastudentwholivesablockawayfromthecampus,thepizzafirmis.practicingpricediscriminationunfairincurringalossonon-campussaleseliminatingallcompetitionAnswer:ATopic:MonopolyPrice-SettingStrategiesSkill:ConceptualAACSB:ReflectiveThinkingAmonopolythatsellseveryunitofitsoutputatthesamepriceisa.unit-pricemonopolylegalmonopolynaturalmonopolysingle-pricemonopolyAnswer:DTopic:MonopolyPrice-SettingStrategiesSkill:RecognitionAACSB:ReflectiveThinkingAllofthefollowingareexamplesofpricediscriminationEXCEPTbuy-one-get-one-freeoffers.“earlybirdspecials"atarestaurant.lowerticketpricesformatineeperformances."buynow,paylater**paymentoptions.Answer:DTopic:MonopolyPrice-SettingStrategiesSkill:ConceptualAACSB:ReflectiveThinkingFirmsthatcanpricediscriminatebetweencustomersdosoto.increaseconsumersurplusincreaseemploymentincreasetheirprofitdecreasethequantitytheyproduceAnswer:CTopic:PriceDiscriminationSkill:RecognitionAACSB:ReflectiveThinkingQuantity(millionsofcubicfeetofnaturalgaspermonth)=oo..yqno」adSC&Quantity(millionsofcubicfeetofnaturalgaspermonth)=oo..yqno」adSC&Giventhemarketdemandandcostdataintheabovefigure,theexistenceoftwofirmsequalsizedfirmsproducingatotalof8millioncubicfeetofnaturalgasmeansthatthelong-runaveragecostofproducingnaturalgasis10centspercubicfoot.20centspercubicfoot.30centspercubicfoot.40centspercubicfoot.Answer:BTopic:NaturalMonopolySkill:AnalyticalAACSB:AnalyticalSkillsGiventhemarketdemandandcostdataintheabovefigure,theexistenceofamonopolyfirmproducing8millioncubicfeetofnaturalgasmakesitpossibletoproducenaturalgasatalong-runaveragecostof10centspercubicfoot.20centspercubicfoot.30centspercubicfoot.40centspercubicfoot.Answer:ATopic:NaturalMonopolySkill:AnalyticalAACSB:AnalyticalSkillsAsingle-pricemonopolychargesallconsumersthelowestpricethattheywanttopayforeachunitduceslessoutputthanitwouldifitcouldpricediscriminate.eliminatesalltheconsumersurplus.createsasmallerdeadweightlossthanitwouldifitcouldpricediscriminate.Answer:BTopic:StudyGuideQuestion,MonopolyPrice-SettingStrategiesSkill:ConceptualAACSB:ReflectiveThinking2ASingle-PriceMonopoly'sOutputandPriceDecisionTotalrevenueequalsmarginalrevenuemultipliedbyquantitysold.pricemultipliedbyquantitysold.totalcostminusprofit.theareabetweenthedemandcurveandthemarginalrevenuecurve.Answer:BTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingForamonopoly,theindustrydemandcurveisthefirm'ssupplycurve.marginalrevenuecurve.demandfitfunction.Answer:CTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingThedemandcurvefacingthemonopolististhesameasthemarketdemandcurve.moreelasticthanthemarketdemandcurve.lesselasticthanthemarketdemandcurve.upwardsloping.Answer:ATopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingMonopolistsmaximizerevenue,notprofits.havenoshort-runfixedcosts.facedownwardslopingdemandcurves.arepricetakers.Answer:CTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAsingle-pricemonopolistsdemandcurveisitsmarginalrevenuecurve.perfectlyelastic.thesameasthemarketdemandcurve.moreelasticthanthemarketdemandcurve.Answer:CTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingForasingle-pricemonopoly,thedemandcurveliesbelowthemarginalrevenuecurve.ontopofthemarginalrevenuecurve.abovethemarginalrevenuecurve.ontopofthetotalrevenuecurve.Answer:CTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingThemarginalrevenuecurveforasingle-pricemonopolyA)liesbelowitsdemandcurve.coincideswithitsdemandcurve.liesaboveitsdemandcurve.ishorizontal.Answer:ATopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAmonopolyfacesaperfectlyelasticdemandcurve.doesnotneedtotakeaccountofdemandbecauseit'stheonlyseller.raisesthepriceofitsproductbyincreasingthequantitysold.raisesthepriceofitsproductbydecreasingthequantitysold.Answer:DTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingThemarginalrevenuecurveforasingle-pricemonopolyishorizontal.isupwardsloping.liesabovethemarketdemandcurve.liesbelowthemarketdemandcurve.Answer:DTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAmonopolistcansellasmuchasitwantsatthechosenpricebecauseitistheonlyseller.canincreasethepriceandthequantitysoldatthesametime.canincreasethepriceonlyifitiswillingtodecreasethequantitysold.isnotrestrictedbythelawofdemand.Answer:CTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingForasingle-pricemonopolisttosellonemoreunitofagood,itmustlowerthepriceonjustthelastunitsold.lowerthepriceonallunitssold.raisethepriceonjustthelastunitsold.raisethepriceonallunitssold.Answer:BTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAsingle-pricemonopolyischaracterizedbyamarginalrevenuecurvethatisA)upwardsloping.downwardsloping.horizontal.vertical.Answer:BTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingForasingle-pricemonopolist,priceismarginalrevenue.lessthangreaterthanequaltolessthanorequaltobutnevermorethanAnswer:BTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingMarginalrevenueforasingle-pricemonopolistislessthanprice.equaltoprice.greaterthanprice.equaltozeroforalllevelsofoutput.Answer:ATopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAsingle-pricemonopolistsetsitspricewhereitsdemandisinelastic.canalwaysincreaseitsprofitsbyincreasingitsprice.hasitsmarginalrevenuelessthanitsprice.isguaranteedaneconomicprofit.Answer:CTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingWhichofthefollowingisacharacteristicofasingle-pricemonopoly?Thefirmisapricetaker.Demandisperfectlyelastic.Therearemanyclosesubstitutesforthefirm'sproduct.Priceexceedsmarginalrevenue.Answer:DTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingForasingle-pricemonopolist,marginalrevenueequalsprice.isgreaterthanprice.islessthanprice.couldbegreaterthan,equalto,orlessthanprice.Answer:CTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingForasingle-pricemonopolist,marginalrevenueislessthanpricebecausetherevenuegainfromthelastunitsoldisoffsetbyarevenuelossontheunitsthatpreviouslyhadbeensoldatahigherprice.therevenuegainfromthelastunitsoldisoffsetbyfurthergainsinpriceonunitsnotsoldatall.totalrevenuealwaysdecreasesasoutputincreases.thepricedoesnothavetobeloweredonallpreviousunitssold.Answer:ATopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingWhichofthefollowingistrueforasingle-pricemonopolist?\)P>MRB)P<MRC)P=MRD)P=elasticityofdemandAnswer:ATopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingForasingle-pricemonopolist,MR=P.MR<P.MRfirstincreasesandthendecreaseswiththequantitysold.MRfirstdecreasesandthenincreaseswiththequantitysold.Answer:BTopic:PriceandMarginalRevenueSkill:RecognitionAACSB:ReflectiveThinkingAmajordifferencebetweenasingle-pricemonopolistandaperfectlycompetitivefirmisthatthemonopolistcanmaximizeprofitbysettingthepriceoftheoutputwheredemandisinelastic.monopolistcanalwaysincreaseitsprofitsbyincreasingthepriceofitsoutput.monopolistsmarginalrevenueislessthanprice.monopolistisguaranteedtoearnaneconomicprofit.Answer:CTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingSue'sSurfboardsisthesolerenterofsurfboardsonBigWaveIsland.Suedoesnotpricediscriminate.ForSue'sSurfboards,thechangeintotalrevenuefromeachadditionalsurfboardrentedishermarginalrevenueandisequaltotherentalpriceofasurfboard.marginalcostandisgreaterthantherentalpriceofasurfboard.marginalrevenueandislessthantherentalpriceofasurfboard.marginalcostandisconstantregardlessofhowmanysurfboardsarerented.Answer:CTopic:PriceandMarginalRevenueSkill:ConceptualAACSB:ReflectiveThinkingQuantity(units)Price(dollarsperunit)416514612Thetableabovegivesthedemandforamonopolistsoutput.Whatisthemarginalrevenueofincreasingproductionfrom4to5units?A)$70B)$16C)$14D)$6Answer:DTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsPrice(dollarsperhaircut)Quantitydemanded(haircutsperday)550104015302()202510300Christy*sHaircuts,thesolesupplierofhaircutsinasmalltown,facesthedemandscheduleshowninthetableabove.WhatisChristy'smarginalrevenuefromthe25thhaircut?A)zeroB)$5.00C)$17.5()D)$50.00Answer:BTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsChristy*sHaircuts,thesolesupplierofhaircutsinasmalltown,facesthedemandscheduleshowninthetableabove.WhatisChristy'smarginalrevenuefromthe35thhaircut?zero-$5.(X)$5.00$12.50Answer:BTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsQuantity(units)Price(dollarsperunit)182736455463Thetableabovegivesthedemandforamonopolistsoutput.Betweenwhichtwoquantitiesismarginalrevenueequalto0?4and53and42and31and2Answer:ATopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsThetableabovegivesthedemandforamonopolistsoutput.Betweenwhichtwoquantitiesisdemandelastic?6and55and44and33and2Answer:ATopic:MarginalRevenueandElasticitySkill:AnalyticalAACSB:AnalyticalSkillsThetableabovegivesthedemandforamonopolistsoutput.Whatisthetotalrevenueinwhen3unitsofoutputareproduced?$21$20C)$18D)$6Answer:CTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsThetableabovegivesthedemandforamonopolistsoutput.Whatisthemarginalrevenuewhenoutputisincreasedfrom5to6units?$18$4$3-$2Answer:DTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsThetableabovegivesthedemandforamonopolistsoutput.Whatisthemarginalrevenuewhenoutputisincreasedfrom2to3units?$18$4$7$6Answer:BTopic:PriceandMarginalRevenueSkill:AnalyticalAACSB:AnalyticalSkillsForasingle-pricemonopoly,marginalrevenueiswhendemandiselasticandiswhendemandisinelastic.A)negative;negativenegative;positivepositive;negativepositive;positiveAnswer:CTopic:MarginalRevenueandElasticitySkill:RecognitionAACSB:ReflectiveThinkingForamonopolist,ontheinelasticrangeofitsdemand,marginalrevenueisnegative.marginalrevenueispositive.marginalrevenueisequaltozero.totalrevenueismaximized.Answer:ATopic:MarginalRevenueandElasticitySkill:RecognitionAACSB:ReflectiveThinkingTrisownstheonlyautorepairshoponLonelyIsland.Trisisasingle-pricemonopoly,soTrisoperatesonthepartofthecurve.elastic;supplyinelastic;supplyinelastic;demandelastic;demandAnswer:DTopic:MarginalRevenueandElasticitySkill:RecognitionAACSB:ReflectiveThinkingIfthepriceelasticityofdemandisgreaterthan1,amonopoly'stotalrevenueincreaseswhenthefirmlowersitsprice.totalrevenuedecreaseswhenthefirmlowersitsprice.marginalrevenueisnegative.marginalrevenueiszero.Answer:ATopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfthepriceelasticityofdemandislessthan1,amonopoly'stotalrevenueincreaseswhenthefirmlowersitsprice.totalrevenuedecreaseswhenthefirmlowersitsprice.marginalrevenueisundefined.marginalrevenueiszero.Answer:BTopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfamonopolistwasoperatinginapricerangewheremarginalrevenuewasnegative,heelasticrangeofthedemandforitsproduct.maximizingrevenuebutnotprofits.Answer:ATopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfadecreaseinpricedecreasestotalrevenue,thendemandiselastic.demandisinelastic.demandisunitelastic.thelawofdemandisviolated.Answer:BTopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfamonopolistlowersitspriceanditsdemandisinelastic,thenitstotalrevenueincreases.totalrevenuedecreases.totalrevenuedoesnotchange.totalrevenueisnegative.Answer:BTopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingAmonopolistthatoperatesalongtheelasticrangeofitsdemandwillfindthattotalrevenueincreaseswhenpricedecreases.totalrevenuedecreaseswhenpricedecreases.marginalrevenueisnegative.itismoreprofitabletooperatealongtheinelasticrangeofthedemandcurve.Answer:ATopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfamonopolyisoperatingalongtheportionofitsdemandcurvewheremarginalrevenueispositive,itstotalrevenueincreaseswhenpricedecreases.totalrevenuedecreaseswhenpricedecreases.totalrevenueremainsthesamewhenpricedecreases.totalrevenueiszero.Answer:ATopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingSue'sSurfboardsisthesolerenterofsurfboardsonBigWaveIsland.Ifmarginalrevenueispositiveatthenumberofsurfboardrentalsmadeeachhour,thenSue*sSurfboardsmustfaceanelasticdemandforsurfboardrentals.mustfaceaninelasticdemandforsurfboardrentals.canincreaseitstotalrevenuebyincreasingthepriceofrentals.mustfaceaunitelasticdemandforsurfboardrentals.Answer:ATopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingForamonopoly,atthelevelofoutputwheremarginalrevenueequalszero,thenthefirmearnsnorevenue.priceelasticityofdemandatthisamountofoutputiszero.firmhasmaximizedtotalrevenue.firmisapricetaker.Answer:CTopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveThinkingIfmarginalrevenueequalszero,thendemandatthislevelofoutputisperfectlyinelastic.inelastic.unitelastic.elastic.Answer:CTopic:MarginalRevenueandElasticitySkill:ConceptualAACSB:ReflectiveTh