Monopoly

Revenue maximization level of output is at

• MC = MR

• MC = AR

• MC = 0

• MC = AC

What is not an advantage of a monopoly?

• achieving economies of scale

• high level of research and development

• Producing a greater quantity at profit-maximizing level of output

• higher prices and lower output

A monopolist can produce at a level of output of either productive or allocative efficiency.

• True

• False

Which is not a type of a legal barrier?

• patent

• excise

• trademark

• copyrights

Unlike perfect competition, a monopolist can make abnormal profits in the long run.

• True

• False

Buying "adidasy" is a form of

• legal barrier

• economies of scale

• brand loyalty

• anti-competitive behavior

The profit-maximizing combination of output and price for a single-price monopoly is:

• Q1 & P1
• Q2 & P3
• Q1 & P4
• Q3 & P2

Which of the following is NOT a major barrier to entry for a monopolist?

• control over a key input

• patent protection

• economies of scale

• product differentiation

Monopolies are always guaranteed to make a profit.

• True

• False

What is it that ultimately limits a monopolist?

• Nothing.

• The demand curve for their product.

• The government.