Question : 11) Assume someone organizes all farms in the nation into : 1241241

 

11) Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs?

i.Consumer surplus decreases.

ii.Economic profit increases.

iii.A deadweight loss is created.

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii, and iii

 

12) When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is transferred to the monopolist in the form of

A) marginal cost.

B) economic profit.

C) deadweight loss.

D) taxes.

E) average variable cost.

 

13) Which of the following statements is FALSE?

A) A perfectly competitive market produces more output and charges a lower price than a monopoly.

B) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC.

C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost.

D) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market.

E) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.

14) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is perfectly competitive, the price of a pound of steak is

A) $4.

B) $8.

C) $12.

D) $20.

E) $2.

 

15) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is a monopoly, the price of a pound of steak is

A) $4.

B) $8.

C) $12.

D) $20.

E) $2.

16) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is perfectly competitive, the price of a pound of steak is ________ and when it is a monopoly, the price of a pound of steak is ________.

A) $4; $20

B) $8; $4

C) $8; $12

D) $4; $8

E) $4; $12

 

17) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is perfectly competitive, the quantity of steak is

A) 2,000 pounds.

B) 3,000 pounds.

C) 4,000 pounds.

D) 5,000 pounds.

E) less than 2,000 pounds.

 

18) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is a monopoly, the quantity of steak is

A) 2,000 pounds.

B) 3,000 pounds.

C) 4,000 pounds.

D) 5,000 pounds.

E) less than 2,000 pounds.

19) Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves. When the market is perfectly competitive, the quantity of steak is ________ pounds, and when the market is a monopoly, the quantity of steak is ________ pounds.

A) 2,000; 4,000

B) 3,000; 2,000

C) 4,000; 4,000

D) 5,000; 3,000

E) 4,000; less than 2,000 pounds.

20) The figure above shows the demand, marginal revenue, and marginal cost curves for Paul’s Parrot pillows, a monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, Paul produces ________ pillows per hour, and if the market was perfectly competitive, ________ pillows per hour would be produced.

A) 0; 4,000

B) 3,000; 4,000

C) 4,000; 4,000

D) 3,000; 3,000

E) 0; 3,000

 

21) The figure above shows the demand, marginal revenue, and marginal cost curves for Paul’s Parrot pillows, a monopoly producer of pillows stuffed with parrot feathers. When the pillow market is a monopoly, the price of a pillow is ________, and if the pillow market is perfectly competitive, the price of a pillow is ________.

A) $40; $20

B) $70; $60

C) $40; $60

D) $60; $40

E) $100; $40