A) A single firm is very large.
B) The government gives a single firm the exclusive right to produce some good.
C) The costs of production make a single producer more efficient than a large number of producers.
D) A key resource is owned by a single firm.
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A
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Competition laws act against cartels and...View Answer
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A) is a very large company.
B) owns a key resource in the production of textbooks.
C) is a natural monopoly.
D) has a legally protected exclusive right to produce this textbook.
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A) €60
B) €40
C) €20
D) €10
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A) creates no deadweight loss.
B) charges one group of buyers a higher price than another group, such as offering a student discount.
C) produces the same monopoly level of output as when a single price is charged.
D) charges some customers a price below marginal cost because costs are covered by the high-priced buyers.
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A
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A) Price discrimination increases a monopolist's profits.
B) Price discrimination can raise economic welfare.
C) Price discrimination requires that the seller be able to separate buyers according to their willingness to pay.
D) Perfect price discrimination generates a deadweight loss.
E) For a monopolist to engage in price discrimination, buyers must be unable to engage in arbitrage.
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D
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A) competition will force firms to attain economic profits rather than accounting profits.
B) competition will force firms to produce surplus output, which drives up price.
C) the average costs of production will increase.
D) the average costs of production will decrease.
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A) creative activity.
B) lower prices due to decreasing average total costs.
C) competition among firms.
D) All of the above are correct.
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A) produces that output where average total cost is at a maximum.
B) is protected by barriers to entry.
C) operates as a price taker rather than a price maker.
D) realizes revenues that exceed variable costs.
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A) €40
B) €20
C) €0
D) €10
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A profit-maximizing monopolist will...View Answer
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A profit-maximizing monopolist will...
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A) improve efficiency.
B) cause the monopolist to exit the market.
C) raise the price of good.
D) attract additional firms to enter the market.
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A) decrease its price below its competitors' prices.
B) decrease production to increase demand for its product.
C) make pricing decisions jointly with other firms.
D) own a key resource.
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A) efficient production.
B) decreasing long-run marginal costs.
C) profit that can be invested in research and development.
D) All of the above are correct.
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A) lower than if the firm charged a single, profit-maximizing price
B) the same as if the firm charged a single, profit-maximizing price.
C) higher than if the firm charged just one price because the firm will capture more consumer surplus.
D) higher than if the firm charged a single price because the costs of selling the good will be lower.
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A) low fixed costs as a portion of total costs
B) free entry and exit
C) barriers to entry
D) declining marginal cost
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A) will remain the same.
B) will fall.
C) will rise.
D) could either rise or fall depending on the elasticity of the monopolist's supply curve.
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