Unit IV AP Microeconomics

Front

Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? Options: In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition., In perfect competition there are many firms, but in monopolistic competition there are only a few firms., In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product., In perfect competition there are few consumers, but in monopolistic competition there are many consumers.

Back

In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product.

Front

A monopoly can price discriminate between two groups of consumers if each group has

Back

a different willingness to pay.

Front

Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is

Back

$150

Front

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

Back

4 units per year and the price will be $6.

Front

For this monopolist, what is the area of consumer surplus? Options: ABHJ, AJGC, ARJ, ARJE

Back

ARJ

Front

Total revenue for this monopoly is represented by area: 0CGE, 0AJE, AJHB, BAJH

Back

0AJE

Front

If this monopolist is given a lump-sum subsidy its output would

Back

remain at E. A lump-sum subsidy does not shift the firm's MC curve.

Front

Economic profits for this monopoly are represented by area:

Back

AJHB

Front

This monopoly will maximize profits at what price?

Back

A

Front

A monopolist introduces a technological innovation that lowers the marginal cost and average cost of production. The price of the good and the quantity are most likely to change in which of the following ways?

Back

P=Decrease; Q=Increase