Chương 15

1. 11. A firm is a natural monopoly if it exhibits the follow-
   ing as its output increases:
   
   a. decreasing marginal revenue.
   b. increasing marginal cost.
   c. decreasing average revenue.
   d. decreasing average total cost.

   1. Aa
   2. Bb
   3. Cc
   4. Dd
2. 22. For a profit-maximizing monopoly that charges the
   same price to all consumers, what is the relationship
   between price P, marginal revenue MR, and marginal
   cost MC?
   a. P = MR and MR = MC.
   b. P > MR and MR = MC.
   c. P = MR and MR > MC
   d. P > MR and MR > MC.

   1. Aa
   2. Bb
   3. Cc
   4. Dd
3. 33. If a monopoly’s fixed costs increase, its price will
   _____ and its profit will _____.
   a. increase, decrease
   b. decrease, increase
   c. increase, stay the same
   d. stay the same, decrease

   1. Aa
   2. Bb
   3. Cc
   4. Dd
4. 44. Compared to the social optimum, a monopoly firm
   chooses
   a. a quantity that is too low and a price that is
   too high.
   b. a quantity that is too high and a price that is
   too low.
   c. a quantity and a price that are both too high.
   d. a quantity and a price that are both too low.

   1. Aa
   2. Bb
   3. Cc
   4. Dd
5. 55. The deadweight loss from monopoly arises because
   a. the monopoly firm makes higher profits than a
   competitive firm would.
   b. some potential consumers who forgo buying the
   good value it more than its marginal cost.
   c. consumers who buy the good have to pay more
   than marginal cost, reducing their consumer
   surplus.
   d. the monopoly firm chooses a quantity that fails to
   equate price and average revenue.

   1. Aa
   2. Bb
   3. Cc
   4. Dd
6. 66. When a monopolist switches from charging a single
   price to practicing perfect price discrimination, it
   reduces
   a. the quantity produced.
   b. the firm’s profit.
   c. consumer surplus.
   d. total surplus.

   1. Aa
   2. Bb
   3. Cc
   4. Dd

Description

Quiz on Chương 15, created by Nguyen Thi My Huong B2306994 on 17/11/2024.

Author

Nguyen Thi My Huong B2306994

Language

English

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History

Created on 17 Nov 2024 · updated on 17 Nov 2024

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chương 1

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