If a monopolist produces to a point at which marginal revenue is less than marginal cost then
Select one:
a. profits are being maximized.
b. profits will always be negative.
c. the incremental cost of producing the last unit exceeds the incremental revenue.
d. the incremental cost of producing the last unit is less than the incremental revenue.
Which of the following is a TRUE statement about monopoly and perfect competition?
Select one:
a. Price is always higher and output higher under monopoly than under perfect competition.
b. Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition.
c. If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition.
d. If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
Compared to perfectly competitive firms, the demand curve for a monopolist will be
Select one:
a. as elastic.
b. more elastic.
c. less elastic.
d. perfectly elastic.
Compared to perfectly competitive firms, the demand curve for a monopolist will be
Select one:
a. as elastic.
b. more elastic.
c. less elastic.
d. perfectly elastic.
Other things being equal, a price-discriminating firm will charge less to the customers who
Select one:
a. have the lowest incomes.
b. have the least elastic demand for its product.
c. have the most elastic demand for the product.
d. are the most rational in making their decisions.
A monopolist faces
Select one:
a. a perfectly elastic demand curve.
b. a perfectly inelastic demand curve.
c. the market demand curve.
d. a two-tiered demand curve.
Monopolies that price discriminate do so because
Select one:
a. they are able to do so and no one else can.
b. they can increase their profits.
c. it keeps them out of trouble with the government.
d. it is more efficient.
