Question 5 of 50

According to Chapter 15, what is the fundamental cause of monopoly?

A key difference between a competitive firm and a monopoly is that a monopoly faces what kind of demand curve?

For a monopoly, what is the relationship between price (P) and marginal revenue (MR)?

According to Table 1 in Chapter 15, what is the total revenue when the monopolist sells 7 gallons of water?

What does the deadweight loss triangle represent in a monopoly market?

The practice of selling the same good at different prices to different customers is known as:

Which of the following is NOT a way policymakers can respond to the problem of monopoly?

In the Readalot Publishing example, if the company charges a single price of $5, what is its profit?

A natural monopoly arises when:

Why does a monopoly not have a supply curve?

In the case study on monopoly drugs, what happens to the price of a drug when its patent runs out?

What is the primary problem with regulating a natural monopoly by setting the price equal to marginal cost?

Which U.S. law was passed in 1890 to reduce the market power of large and powerful 'trusts'?

Perfect price discrimination eliminates deadweight loss because:

When a monopoly increases the quantity it sells, the 'price effect' refers to the fact that:

In the monopoly revenue table (Table 1), marginal revenue becomes negative when the quantity of water sold increases from:

A monopolist's profit is calculated as:

Which of these is given as an example of price discrimination in the text?

What social problem is NOT necessarily created by a monopoly's profit?

A socially efficient quantity of output is found where the demand curve intersects which other curve?

According to the analysis of the Microsoft antitrust case, what was the central issue involving the practice of tying?

When airlines charge a lower price for a round-trip ticket if the traveler stays over a Saturday night, what is the airline's goal?

Why do economists generally prefer private ownership to public ownership of natural monopolies?

According to Table 1, if the monopolist wants to sell 5 gallons of water instead of 4, what price must it charge?

Which of the following is NOT a source of barriers to entry that can create a monopoly?

When a monopolist moves from selling 2 gallons to 3 gallons, as shown in Table 1, the output effect on revenue is an increase of $8. What causes the price effect?

In Figure 4, the profit-maximizing quantity for the monopolist is Qmax. At this quantity, what is the relationship between the monopoly price and marginal cost?

According to the analysis in Chapter 15, is a monopolist’s profit considered a social cost?

One lesson from the parable about Readalot Publishing is that price discrimination can:

The business practice of tying may be profitable for a monopoly if:

In the case study of monopoly drugs, why does the brand-name drug (Prozac) still sell for about three times the price of the generic version after the patent expires?

What is a major critique of regulating a natural monopoly by setting the price equal to average total cost?

What is the socially efficient price and quantity in the market shown in Figure 8?

In the Readalot Publishing example with price discrimination, what is the company's total profit?

A key resource owned by a single firm is a potential cause of monopoly. Why is this rare in practice?

A monopolist produces a quantity of output that is:

Why do patent and copyright laws exist?

What happens to consumer surplus under perfect price discrimination?

In the Microsoft antitrust case, what was Microsoft's defense for integrating its browser into Windows?

In the monopoly revenue table (Table 1), at what quantity of water is total revenue maximized?

A monopolist's average revenue is always equal to:

The socially efficient level of output is where the value to the marginal buyer equals the:

When a firm can perfectly price discriminate, the entire surplus in the market is realized as:

What is the primary reason that predatory pricing is considered by some economists to be a rarely profitable business strategy?

For a profit-maximizing monopoly that does not price discriminate, what is true at the chosen level of output?

In the monopoly profit diagram (Figure 5), the monopolist's profit is represented by the area of the rectangle with a height of (P - ATC) and a width of:

Which of the following scenarios is an example of a government-created monopoly?

According to economist George Stigler's quote, why might doing nothing be the best policy response to a monopoly?

In the Readalot Publishing example, when the publisher cannot price discriminate, what is the profit-maximizing price and quantity?