Question 1

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by ____ and its average total cost by ____.

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Question 2

Answer the question on the basis of the provided demand and cost data for a pure monopolist.  The profit-maximizing level of output will be

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Question 3

Refer to the diagram. At the profit-maximizing level of output, total revenue will be

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Question 4

A pure monopolist is producing an output such that ATC = $7, P = $9, MC = $6, MR = $5, and AVC = $5.50. This firm is realizing

Accepted Answer

The firm is making an economic profit because the price (P = $9) is greater than the average total cost (ATC = $7). However, since marginal cost (MC = $6) is less than marginal revenue (MR = $5), the firm could increase profit by reducing output until MC equals MR.

Question 5

Refer to the diagram. At the profit-maximizing level of output, total cost will be

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Question 6

Answer the question on the basis of the provided demand and cost data for a pure monopolist.  The profit-maximizing monopolist will realize a

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Question 7

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total costs will be

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Question 8

Answer the question on the basis of the provided demand and cost data for a pure monopolist.  The profit-maximizing price for the monopolist will be

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Question 9

A pure monopolist is producing an output such that ATC = $4, P = $5, MC = $2, MR = $3, and AVC = $2.50. This firm is realizing

Accepted Answer

Since P > ATC, the firm is making an economic profit. To increase profit, it should produce more until MR = MC. Currently, MR < MC, indicating not enough is being produced.

Question 10

Refer to the diagram. To maximize profits or minimize losses, this firm should produce

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Question 11

Suppose that a pure monopolist can sell 7 units of output at $9 per unit and 8 units at $8.50 per unit. For the monopolist to profitably produce and sell the eighth unit of output, its marginal cost must be anywhere at or below

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Question 12

If a pure monopolist is producing at that output where P = ATC, then

Accepted Answer

When a firm's price (P) equals its average total cost (ATC), it means that the firm is covering all its costs, including a normal return on investment, but it is not earning any economic profits above that normal return.

Question 13

Refer to the diagram. At the profit-maximizing level of output, the firm will realize

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Question 14

If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by

Accepted Answer

To maximize profits, a monopolist produces where marginal revenue (MR) equals marginal cost (MC). If MR < MC, reducing output will decrease costs more than revenues, increasing profits. Raising the price can compensate for the reduced output, maintaining or increasing revenue.

Question 15

If profits are maximized (or losses minimized), which of the following conditions is common to both unregulated monopoly and pure competition?

Accepted Answer

In both unregulated monopoly and pure competition, the condition for profit maximization (or loss minimization) is where marginal revenue (MR) equals marginal cost (MC). This is because, at this point, any additional unit produced would cost more than it would return in revenue, thus not contributing to further profits.

Question 16

Refer to the data. At its profit-maximizing output, this firm's total revenue will be

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Question 17

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm will be operating in the

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Question 18

A pure monopolist

Accepted Answer

A pure monopolist will realize an economic profit if the price (which is determined by the demand curve at the profit-maximizing level of output) exceeds average total cost (ATC) at that level of output. This is because economic profit is calculated as total revenue minus total cost, and if the price (which influences total revenue) is higher than ATC (which influences total cost), the firm will earn an economic profit.

Question 19

Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing

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Question 20

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total profit will be

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Quiz 12: Pure Monopoly

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by and its average total cost by .

Answer the question on the basis of the provided demand and cost data for a pure monopolist. The profit-maximizing level of output will be

Refer to the diagram. At the profit-maximizing level of output, total revenue will be

A pure monopolist is producing an output such that ATC = $7, P = $9, MC = $6, MR = $5, and AVC = $5.50. This firm is realizing

Refer to the diagram. At the profit-maximizing level of output, total cost will be

Answer the question on the basis of the provided demand and cost data for a pure monopolist. The profit-maximizing monopolist will realize a

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total costs will be

Answer the question on the basis of the provided demand and cost data for a pure monopolist. The profit-maximizing price for the monopolist will be

A pure monopolist is producing an output such that ATC = $4, P = $5, MC = $2, MR = $3, and AVC = $2.50. This firm is realizing

Refer to the diagram. To maximize profits or minimize losses, this firm should produce

Suppose that a pure monopolist can sell 7 units of output at $9 per unit and 8 units at $8.50 per unit. For the monopolist to profitably produce and sell the eighth unit of output, its marginal cost must be anywhere at or below

If a pure monopolist is producing at that output where P = ATC, then

Refer to the diagram. At the profit-maximizing level of output, the firm will realize

If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by

If profits are maximized (or losses minimized) , which of the following conditions is common to both unregulated monopoly and pure competition?

Refer to the data. At its profit-maximizing output, this firm's total revenue will be

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm will be operating in the

A pure monopolist

Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing

Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total profit will be