Ch17 MicroEcon Monopoly Quiz

The following graph depicts the market situation for a monopoly pastry shop called Bearclaws.

Based upon the information shown, what price will Bearclaws charge to maximize profits?

• $10.50

• $14

• $7

• $12

The following graph depicts the market situation for a monopoly pastry shop called Bearclaws.

Based upon the information shown, how many units will Bearclaws produce to maximize profits?

• 105

• 90

• 130

• 70

The following graph depicts the market situation for a monopoly pastry shop called Bearclaws.

Based upon the information shown, what are total costs for Bearclaws, given that it maximizes profits?

• $700

• $490

• $980

• $784

A monopolist's profits with price discrimination will be

• higher than if the firm charged a single price because the costs of selling the good will be lower.

• higher than if the firm charged just one price because the firm will capture more consumer surplus.

• the same as if the firm charged a single, profit-maximizing price.

• lower than if the firm charged a single, profit-maximizing price.

A perfectly price-discriminating monopolist is able to

• maximize profit and produce a socially optimal level of output.

• maximize profit, but not produce a socially optimal level of output.

• exercise illegal preferences regarding the race and/or gender of its employees.

• produce a socially optimal level of output, but not maximize profit.

The shape of the average total cost curve in the figure suggests an opportunity for a profit-maximizing monopolist to take advantage of

• increasing marginal cost.

• diminishing marginal product.

• economies of scale.

• diseconomies of scale.

What area measures the monopolist's profit?

• 0.5[(K − C) × (Z − T)]

• (L − A) × T

• (K − B) × W

• (K − C) × W

What is the monopoly price and quantity?

• Price = C; quantity = X

• Price = B; quantity = X

• Price = B; quantity = Y

• Price = A; quantity = X

What is the socially efficient price and quantity?

• Price = C; quantity = Y

• Price = A; quantity = X

• Price = B; quantity = Y

• Price = B; quantity = X

What is the area of deadweight loss?

• The rectangle (A − C) × X plus the triangle 1/2[(A − C) × (Y − X)]

• The triangle 1/2[(A − B) × (Y − X)]

• The rectangle (A − C) × X

• The triangle 1/2[(A − C) × (Y − X)]