AP Micro Monopoly and Price Discrimination Flashcard

Front

The profit-maximizing output for this monopoly is

Back

4

Front

The total revenue for this monopoly is

Back

$240

Front

The total cost for this monopoly is

Back

$80

Front

This monopoly's profit earning price is equal to

Back

$160

Front

How is a monopoly different from a perfectly competitive industry with the same costs? I. It produces a smaller quantity II. It charges a higher price III. It earns normal profits in the long run

Back

It produces a smaller quantity and charges a higher price.

Front

Which is true of a monopoly compared to a perfectly competitive market with the same costs? I. Consumer surplus is smaller II. Profit is smaller II. Deadweight loss is smaller

Back

I only

Front

A natural monopoly
Options:
Experiences diseconomies of scale
Has a lower ATC if there is a single firm in the market
Occurs in a market that relies on natural resources for its production
Had decreasing returns to scale in the industry
must be provided by the government to achieve efficiency

Back

Has a lower ATC if there is a single firm in the market

Front

In the United States, which government action is most common for a natural monopoly?

Back

Use price regulation.

Front

Which is most likely to be higher for a regulation natural monopoly than for an unregulated one: Product variety, Quantity, Price, Profit, Deadweight loss?

Back

Quantity

Front

Which characteristic is necessary for firms in order to price discriminate? Options: Free entry and exit, Differentiated products, Many sellers, Some control over price, Horizontal demand curve

Back

Some control over price