Question : 44) Which of the following NOT correct about a single-price : 1241237

44) Which of the following is NOT correct about a single-price monopoly?

A) Maximum profit is found where demand is the most inelastic.

B) Marginal revenue is negative when demand is inelastic.

C) Marginal revenue is positive when demand is elastic.

D) To sell more output, the firm must lower its price.

E) To maximize its profit, the firm produces so that marginal revenue equals marginal cost.

45) Which of the following is correct for a single-price monopoly?

i.The firm can determine the quantity it produces and the price it charges.

ii.It would never profitably produce output in the inelastic range of its demand.

iii.Its marginal revenue is less than price.

A) i only

B) i and iii

C) ii only

D) ii and iii

E) i, ii, and iii

46) Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________.

A) shutting down

B) lowering its price and increasing its output

C) raising its price and decreasing its output

D) lowering its price and decreasing its output

E) not changing its price and increasing its output

47) A single-price monopoly is producing at an output level where marginal revenue is $15, marginal cost is $13, and price is $20. This monopoly is

A) not maximizing its profit and should decrease output to increase its profit.

B) not maximizing its profit and should increase output to increase its profit.

C) maximizing its profit but should shut down.

D) maximizing its profit and should not shut down.

E) maximizing its profit but still should decrease output to earn even more profit.

48) The above table gives the demand schedule for a single-price monopoly. The marginal revenue first becomes negative when going from

A) 1 unit to 2 units.

B) 2 units to 3 units.

C) 3 units to 4 units.

D) 4 units to 5 units.

E) None of the above; the total revenue is always positive so the marginal revenue must always be positive.

49) The above table gives the demand schedule for a single-price monopoly. If the marginal cost is $3, the profit maximizing output for the monopoly will be between

A) 1 to 2 units.

B) 2 to 3 units.

C) 3 to 4 units.

D) 4 to 5 units.

E) Exactly 5 units.

50) Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What quantity will the Busy Bee produce to maximize its profit?

A) 20 hamburgers per hour

B) 30 hamburgers per hour

C) 50 hamburgers per hour

D) 0 hamburgers per hour.

E) 10 hamburgers per hour

51) Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What price will the Busy Bee charge to maximize its profit?

A) $5.00 for a hamburger

B) $3.00 for a hamburger

C) $2.00 for a hamburger

D) $1.00 for a hamburger

E) $4.00 for a hamburger

52) Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. In order to maximize profit, the Busy Bee produces ________ hamburgers per hour and sets a price of ________ per hamburger.

A) 20; $3.00

B) 20; $1.00

C) 30; $2.00

D) 30; $4.00

E) 50; $5.00

53) Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. If the Busy Bee produces 40 hamburgers per hour, then

A) marginal revenue will exceed marginal cost.

B) profit will be maximized.

C) marginal revenue will be negative.

D) marginal revenue will be maximized.

E) both the marginal revenue and the price will be negative.