Question :
20) The figure above shows the demand, marginal revenue, and : 1226209
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
22) The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The amount of consumer surplus when the market has a monopoly producer is
A) ace.
B) abf.
C) bcd.
D) bcef.
E) acd.
23) The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________.
A) abf; ace
B) abf; bcd
C) ace; bcd
D) ace; abf
E) bcd; ace
24) The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The deadweight loss when the market has a monopoly producer is
A) ace.
B) abf.
C) bcd.
D) bcef.
E) acd.
25) In the above figure, a perfectly competitive market will have a price of ________ and a single-price monopoly will have a price of ________.
A) P1 and quantity of Q1; P2 and quantity of Q2
B) P2 and quantity of Q2; P1 and quantity of Q1
C) P3 and quantity of Q3; P1 and quantity of Q1
D) P2 and quantity of Q2; P3 and quantity of Q1
E) P2 and quantity of Q1; P1 and quantity of Q1
26) In the above figure, for a single-price monopoly the consumer surplus is equal to the area
A) abP1.
B) acP2.
C) bce.
D) bed.
E) cQ20P2.
27) In the above figure, for a single-price monopoly the deadweight loss is equal to the area
A) abP1.
B) acP2.
C) bce.
D) bed.
E) P1beP3.
28) Comparing a perfectly competitive market to a single-price monopoly with the same costs, we see that
A) both markets are equally efficient in their use of resources.
B) the monopoly market always is more efficient in the use of resources.
C) the perfectly competitive market achieves efficiency in resource use while the monopoly market does not.
D) the monopoly market achieves efficiency in resource use while perfectly competitive market does not.
E) None of the above answers is correct because comparing a perfectly competitive market to a monopoly is impossible.
29) A monopoly creates a deadweight loss because the monopoly
A) sets a price that is too low.
B) makes a normal profit.
C) does not maximize profit.
D) produces less than the efficient quantity.
E) produces more than the efficient quantity.
30) Monopolies are inefficient because, at the profit-maximizing output level,
A) MC = MR.
B) MC does not equal MR.
C) MB = MC.
D) MB does not equal MC.
E) P = ATC.
