WorksheetsMonopolies
Total questions: 10
Worksheet time: 10mins
Name
Class
Date
1.
When one or more unit is sold, the total revenue increases by the price at which the unit is sold. This is known as
a)
quantity effect
b)
price effect
c)
substitution effect
d)
income effect
2.
In order to sell the last unit, a monopolist must cut the market price on all units sold. This will decrease TR. This idea is known as the
a)
quantity effect
b)
Price effect
c)
Substitution effect
d)
Income Effect
3.
For a monopolist, Total Revenue is highest when
a)
Marginal Revenue is equal to zero
b)
Marginal Revenue is the highest
c)
marginal revenue is negative
d)
marginal revenue is increasing
4.
To maximize profits, the monopolist will produce where
a)
MR=MC
b)
MR>MC
c)
MR = 0
5.
The monopolist's profit-maximizing output is
a)
0
b)
4
c)
8
d)
10
6.
The monopolist's total revenue equals
a)
$80
b)
$160
c)
$240
d)
$300
7.
The monopolist's total cost equals
a)
$20
b)
$80
c)
$160
d)
$0
8.
The monopolist is earning a profit equal to
a)
$0
b)
$40
c)
$80
d)
$160
9.
Within the range of market demand, which of the following is consistent with the conditions of a natural monopoly?
a)
Long-run total cost decreases as output increases.
b)
Long-run average total cost remains constant as output increases.
c)
Long-run average total cost decreases as output increases.
d)
Marginal cost exceeds Average cost.
10.
Which of the following is a source of monopoly power?
a)
Scarcity
b)
Elasticity of demand
c)
Barriers to entry
d)
Low Profits
100 %
