Question 1

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow.  Figure 13.3
-Refer to Figure 13.3. The marginal revenue of the eighth pound of burritos is
A) $3.
B) $5.
C) $12.
D) $96.

Accepted Answer

Based on the marginal revenue of the eighth pound of burritos, which is $5, the optimal choice would be to produce and sell more burritos until the marginal cost equals $5, as this is the point of profit maximization. Any additional production beyond that point would result in a decrease in profit.

Question 2

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The firm's marginal revenue will be negative at
A) $9.
B) $3.
C) all prices.
D) prices between $4 and $8.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 3

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. When the monopolist sells three units of output, the price per unit is
A) $210.
B) $230.
C) $300.
D) $630.

Accepted Answer

When the monopolist increases sales from two to three units, total revenue increases from $600 to $630, indicating that the third unit is sold for $30 more. Therefore, the total revenue of $630 for three units means each unit is sold for $210 ($630/3).

Question 4

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. In order to sell three units of output instead of only two, the monopolist must
A) increase its price by $30 per unit.
B) decrease its price by $90 per unit.
C) make no change in price and increase output by one unit.
D) decrease its price by $30 per unit.

Accepted Answer

The answer of When a monopolist sells two units of...

Question 5

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.
A) profit
B) marginal revenue
C) total revenue
D) marginal cost

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 6

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The marginal revenue of the sixth pound of cheese is
A) -$4.
B) -$1.
C) $1.
D) $4.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 7

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. This firm's marginal revenue will be negative at
A) prices above $5.
B) prices below $5.
C) all prices.
D) prices between $4 and $8.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 8

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The marginal revenue of the fourth pound of cheese is
A) $1.
B) $3.
C) $6.
D) $24.

Accepted Answer

The marginal revenue of the fourth pound of cheese is the change in total revenue when the quantity sold increases from 3 to 4 pounds. From the graph, we can see that the total revenue increases from $9 to $12 when the quantity sold increases from 3 to 4 pounds. Therefore, the marginal revenue of the fourth pound of cheese is $3.

There is no information provided to determine the best choice(s).

Question 9

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. This firm's marginal revenue will be positive at
A) $9.
B) $3.
C) all prices.
D) prices between $4 and $8.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 10

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The marginal revenue of the third pound of cheese is
A) -$5.
B) $5.
C) $7.
D) $21.

Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit of a product. If the total revenue from selling 2 pounds of cheese is $14 and from selling 3 pounds is $19, the marginal revenue of the third pound is $19 - $14 = $5.

Question 11

Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $600, and if it sells three calculators its total revenue is $750. The marginal revenue of the third calculator sold is
A) $50.
B) $75.
C) $150.
D) $250.

Accepted Answer

Marginal revenue is the additional revenue generated from selling one more unit. Here, selling the third calculator increases total revenue from $600 to $750, a difference of $150.

Question 12

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. This firm's marginal revenue will be positive at
A) prices above $5.
B) prices below $5.
C) all prices.
D) prices between $4 and $8.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 13

When a monopolist sells two units of output its total revenue is $150. When a monopolist sells three units of output its total revenue, is $210. When the monopolist sells three units of output, the price per unit is
A) $50.
B) $60.
C) $70.
D) $75.

Accepted Answer

To determine the price per unit when three units are sold, we can use the formula for total revenue: 
Total revenue = Price per unit x Quantity of output

Using the given information, we can set up two equations: 
150 = 2P 
210 = 3P

Solving for P in the second equation, we get: 
P = 210/3 
P = 70

Therefore, the price per unit when three units are sold is $70.

Question 14

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The marginal revenue of the fifth pound of cheese is
A) $1.
B) $3.
C) $6.
D) $24.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 15

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. This firm's total revenue will be maximized at a price of
A) $8.
B) $6.
C) $5.
D) $4.

Accepted Answer

The point where total revenue is maximized is where the price elasticity of demand is unitary, which is where the slope of the total revenue curve is zero. In Figure 13.2, the slope of the total revenue curve is zero at a price of $5. Therefore, this firm's total revenue will be maximized at a price of $5.

Question 16

Stereo Sound Unlimited has a monopoly over the installation of surround sound systems. If Stereo Sound Unlimited's total revenue from installing 10 sound systems is $20,000 and its total revenue from installing 11 sound systems is $18,000, what is the marginal revenue of the eleventh sound system?
A) -$2,000
B) -$1,000
C) $2,000
D) $3,800

Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. Here, the total revenue decreases from $20,000 to $18,000 when the eleventh system is installed, so the marginal revenue is $18,000 - $20,000 = -$2,000.

Question 17

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000, what is the marginal revenue of the eighteenth sound system?
A) -$3,000
B) $1,000
C) $1,500
D) $3,000

Accepted Answer

Marginal revenue is the additional revenue generated from selling one more unit of a good or service. In this case, the increase in total revenue from selling 3 more sound systems (from 15 to 18) is $33,000 - $30,000 = $3,000. Therefore, the marginal revenue of each of those 3 systems, assuming they each sold for the same price, is $3,000 / 3 = $1,000.

Question 18

For a perfectly competitive firm, the marginal revenue curve has ________ point(s) in common with the firm's demand curve.
A) one
B) no
C) all
D) indeterminate from the given information

Accepted Answer

In a perfectly competitive market, a firm's marginal revenue curve is the same as its demand curve because the firm is a price taker and sells its product at the market price for all levels of output.

Question 19

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000. The marginal revenue received from selling the 18th sound system is
A) equal to the price of the 16th sound system.
B) greater than the price of the 16th sound system.
C) less than the price of the 16th sound system.
D) Indeterminate from the given information.

Accepted Answer

Marginal revenue is the additional revenue from selling one more unit. The increase in total revenue from selling 3 more systems (from 15 to 18) is $3,000, so the average additional revenue per system in this range is $1,000. Since the price must decrease to sell more in a monopolistic market, the marginal revenue of the 18th system is less than the price of the 16th system, assuming the price of each system sold decreases to sell more units.

Question 20

For a monopoly, the marginal revenue curve has ________ point(s) in common with the firm's linear demand curve.
A) one
B) no
C) all
D) indeterminate from the given information

Accepted Answer

A monopoly's marginal revenue curve intersects its linear demand curve at only one point, where the elasticity of demand is unitary. This is because as the monopoly reduces the price to sell more units, the price reduction affects both the units sold and the price of all previous units sold, leading to a downward sloping marginal revenue curve.

Quiz 13: Monopoly and Antitrust Policy

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. Figure 13.3 -Refer to Figure 13.3. The marginal revenue of the eighth pound of burritos is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The firm's marginal revenue will be negative at

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. When the monopolist sells three units of output, the price per unit is

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. In order to sell three units of output instead of only two, the monopolist must

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The marginal revenue of the sixth pound of cheese is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. This firm's marginal revenue will be negative at

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The marginal revenue of the fourth pound of cheese is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. This firm's marginal revenue will be positive at

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The marginal revenue of the third pound of cheese is

Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $600, and if it sells three calculators its total revenue is $750. The marginal revenue of the third calculator sold is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. This firm's marginal revenue will be positive at

When a monopolist sells two units of output its total revenue is $150. When a monopolist sells three units of output its total revenue, is $210. When the monopolist sells three units of output, the price per unit is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. The marginal revenue of the fifth pound of cheese is

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2 -Refer to Figure 13.2. This firm's total revenue will be maximized at a price of

Stereo Sound Unlimited has a monopoly over the installation of surround sound systems. If Stereo Sound Unlimited's total revenue from installing 10 sound systems is $20,000 and its total revenue from installing 11 sound systems is $18,000, what is the marginal revenue of the eleventh sound system?

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000, what is the marginal revenue of the eighteenth sound system?

For a perfectly competitive firm, the marginal revenue curve has ________ point(s) in common with the firm's demand curve.

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000. The marginal revenue received from selling the 18th sound system is

For a monopoly, the marginal revenue curve has ________ point(s) in common with the firm's linear demand curve.