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WorksheetsChapter 10- monopoly
Total questions: 12
Worksheet time: 7mins
A single-price monopoly is characterized by a marginal revenue curve that is
upward sloping.
downward sloping.
horizontal.
vertical.
A barrier to entry is
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
A type of monopoly that arises because a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.
Monopoly
Natural Monopoly
Price Discrimination
Cartel
The profit-maximizing combination of output and price for a single-price monopoly is:
A,B,H,J
A,J,G,C
A,R,J
A,R,J,E
Dead weight loss for this monopoly are represented by area:
J,H,N
J,K,N
J,G,N
If a monopoly sales tax on each unit sold increases the price from $15 to $16, what is the new quantity demanded?
What happens to the marginal revenue of a monopoly when it increases output by one unit?
It becomes equal to price
It decreases
It increases
It remains constant
Which area on a monopoly graph typically represents the loss in total surplus due to market power?
Total revenue
Deadweight loss
Consumer surplus
Producer surplus
What is the relationship between marginal cost and marginal revenue at the profit-maximizing output for a monopoly?
Marginal cost equals marginal revenue
Marginal cost is greater than marginal revenue
Marginal cost is less than marginal revenue
Marginal cost is unrelated to marginal revenue
