Question 1

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 2

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

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

Question 3

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 4

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 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

Total revenue is maximized when the price is set at a level where any increase or decrease would lead to a decrease in total revenue, which typically occurs at the midpoint of a linear demand curve.

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 fourth pound of cheese is
A) $1.
B) $3.
C) $6.
D) $24.

Accepted Answer

Marginal revenue is the additional revenue from selling one more unit. If the price per pound decreases as more is sold, the marginal revenue for the fourth pound would be the difference in total revenue between selling three and four pounds.

Question 7

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 8

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 9

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

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

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 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 11

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

For a monopoly, the marginal revenue curve and the firm's linear demand curve intersect at only one point, which is where the demand curve intersects the vertical axis. This is because the marginal revenue curve falls at twice the rate of the demand curve for a linear demand curve.

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 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 13

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 14

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 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. 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 16

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 17

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 18

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 19

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

Total revenue is maximized where the elasticity of demand is unitary, meaning the percentage change in quantity demanded equals the percentage change in price. Without seeing Figure 13.2, the correct answer typically involves understanding this economic principle, and in this context, it's assumed that at a price of $5, this condition is met.

Question 20

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.

Quiz 13: Monopoly and Antitrust Policy

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 13.3 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

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

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?

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 fourth pound of cheese 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

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

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

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

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

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

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?

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

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 positive at

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

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

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