Question : 61) If a single-price monopolist’s price equals marginal cost, the : 1384240

 

61) If a single-price monopolist’s price equals marginal cost, the firm

A) could increase its profits by lowering output and raising price.

B) should maintain its current price because it is a price taker.

C) will find it more profitable to produce a greater output.

D) is producing where MR = MC and thus is maximizing profits.

E) should definitely shut down.

62) Suppose that a single-price monopolist calculates that at its present output, marginal revenue is $2 and marginal cost is $1. If the price of the product is $3, the monopolist could maximize its profits by

A) lowering price and raising output.

B) lowering price and leaving output unchanged.

C) raising price and leaving output unchanged.

D) doing nothing.

E) shutting down.

63) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) staying at the current price and output.

B) lowering price and increasing output.

C) lowering price and leaving output unchanged.

D) raising price and leaving output unchanged.

E) shutting down.

64) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) $3000; is not

B) $7500; is not

C) $15 000; is

D) $97 500; is not

E) $105 000; is

65) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) staying at the current price and output.

B) lowering price and increasing output.

C) lowering price and leaving output unchanged.

D) raising price and lowering output.

E) shutting down.

66) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) $1500.

B) $3000.

C) $6500.

D) $10 500.

E) $13 500.

67) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) staying at the current price and output.

B) lowering price and increasing output.

C) lowering price and leaving output unchanged.

D) raising price and lowering output.

E) shutting down.

68) Suppose that a single-price monopolist knows the following information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A) -$2000.

B) -$1000.

C) 0.

D) $1000.

E) $2000.

69) Which of the following statements describes a major difference between monopoly and perfect competition?

A) Perfectly competitive firms cannot maintain positive economic profits in the long run, whereas monopolists can.

B) Monopolists do not consider consumer demand when choosing price and output levels.

C) Monopolistic firms tend to maximize revenue while perfectly competitive firms maximize profit.

D) Monopolistic firms emphasize cost minimization whereas perfectly competitive firms emphasize profit maximization.

E) Perfectly competitive firms can never earn economic profits; monopolistic firms always earn economic profits.

70) Which one of the following is a natural barrier to firms entering an industry?

A) decreasing returns to scale

B) a positively sloped LRAC curve over the whole range of output

C) a negatively sloped LRAC curve over the whole range of output

D) threats of punitive price-cutting by existing producers

E) licensing and patent restrictions