Question :
1) One similarity between a monopolist and a perfectly competitive : 1384234
1) One similarity between a monopolist and a perfectly competitive firm is that both
A) are large relative to their markets.
B) may have similarly shaped cost curves.
C) choose the price at which to sell their product.
D) can make economic profits in the long run.
E) need to know the shape of the market demand curve.
2) The marginal revenue curve facing a single-price monopolist
A) is the same as the average revenue curve facing the monopolist.
B) is the same as the demand curve facing the monopolist.
C) shows the change in the profit for the firm.
D) lies below the average revenue curve.
E) at first falls to a minimum and then rises as output is increased.
3) The demand curve facing a single-price monopolist slopes downward because
A) its average revenue equals its marginal revenue.
B) its demand curve is the market demand curve, which is generally downward sloping.
C) demand is perfectly inelastic.
D) it sells typically to only one consumer.
E) its supply curve is upward sloping.
4) A monopoly is distinguished from a firm operating under any other market structure in the following way: the monopoly
A) charges a price higher than its average revenue.
B) can choose its output level.
C) can choose its level of cost.
D) does not produce at a profit-maximizing level of output.
E) faces a demand curve which is identical to the market demand curve.
5) A monopolistic firm faces a downward-sloping demand curve because
A) there are a large number of firms in the industry, all selling the same product.
B) the demand for its product is always inelastic.
C) the market price is affected by the amount sold by a monopolistic firm.
D) marginal revenue is negative throughout the feasible range of output.
E) the monopolistic firm can exploit economies of scale.
6) The average revenue curve for a single-price monopolist
A) is a horizontal line, equal to the price of its product.
B) lies below its demand curve.
C) coincides with its demand curve.
D) slopes upward to the right.
E) does not exist.
7) For a single-price monopolist, marginal revenue falls faster than price (as output rises) because
A) in order to sell additional units, the price must be lowered on all units.
B) profits are maximized when marginal cost equals marginal revenue.
C) the firm has no supply curve.
D) the cost of producing extra units of output increases as production is increased.
E) none of the above — marginal revenue does not fall faster than price.
8) Marginal revenue is less than price for a single-price monopolist because the
A) firm’s output decisions do not affect the selling price.
B) firm must lower its price for all units if it wants to sell more of the product.
C) monopolist charges a price higher than the unit production cost.
D) monopolist must worry about how its price setting will lead to entry by other firms.
E) monopolist has achieved economies of scale.
9) Refer to Table 10-1. For a single-price monopolist, the marginal revenue associated with increasing sales from 5 to 6 units is
A) -4.
B) -2.
C) 0.
D) 2.
E) 4.
10) Refer to Table 10-1. For a single-price monopolist, the marginal revenue associated with increasing sales from 6 to 7 units is
A) -4.
B) -2.
C) 0.
D) 2.
E) 4.
