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 10th pound of burritos is

Accepted Answer

The marginal revenue of the 10th pound of burritos is $1, as shown by the point where the MR curve intersects the x-axis at 10 pounds.

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 sixth pound of burritos is

Accepted Answer

The marginal revenue is the additional revenue from selling one more unit. If the sixth pound of burritos adds $9 to total revenue, then the marginal revenue is $9.

Question 3

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. This firm's marginal revenue will be negative at

Accepted Answer

When prices fall below $10, the firm is likely to be operating in the inelastic portion of the demand curve, where a decrease in price leads to a decrease in total revenue, resulting in negative marginal revenue.

Question 4

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. This firm's marginal revenue will be positive at

Accepted Answer

Marginal revenue is positive when the price is above the point where marginal revenue equals zero, which typically occurs at prices above the midpoint of the demand curve.

Question 5

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. This firm's ________ will be maximized at a price of $10.

Accepted Answer

Total revenue is maximized at the price where the product of price and quantity sold is highest, which is typically at the midpoint of a linear demand curve.

Question 6

The Rare Bird Company has a monopoly in the sale of macaws in Iowa. When the Rare Bird Company sells three macaws, its marginal revenue is $30. When the Rare Bird Company sells four macaws, its marginal revenue will be

Accepted Answer

In a monopolistic market, the marginal revenue decreases as the quantity sold increases because the monopolist must lower the price to sell additional units.

Question 7

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. This firm's marginal revenue will be positive at

Accepted Answer

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

Question 8

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 12th pound of burritos is

Accepted Answer

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

Question 9

For a monopolist, if total revenue increases as output decreases, then marginal revenue is

Accepted Answer

If total revenue increases as output decreases, it means that the reduction in revenue from selling fewer units is less than the increase in revenue per unit sold. This indicates that the marginal revenue, which is the additional revenue from selling one more unit, is negative.

Question 10

A non-discriminating monopolist maximizes total revenue when its marginal revenue is

Accepted Answer

A non-discriminating monopolist maximizes total revenue when its marginal revenue is zero. This is because at the point where marginal revenue becomes zero, any additional unit sold would start to decrease total revenue, indicating the peak of the total revenue curve.

Question 11

For a monopolist, price

Accepted Answer

For a monopolist, the price is always greater than marginal revenue because the monopolist faces a downward-sloping demand curve. To sell additional units, the monopolist must lower the price, which affects all units sold, thus making marginal revenue less than the price.

Question 12

For a non-discriminating monopolist to sell one more unit, it must

Accepted Answer

A non-discriminating monopolist must lower the price for all units, including the last and previous ones, to sell one more unit, because they charge a single price for all units sold.

Question 13

A monopolist will not produce

Accepted Answer

A monopolist will avoid producing in the inelastic portion of its demand curve because in this range, lowering the price to sell one more unit leads to a decrease in total revenue, as the marginal revenue is negative. This is not profitable for the monopolist.

Question 14

The demand curve facing a monopolistic firm is

Accepted Answer

The demand curve facing a monopolistic firm is downward sloping, indicating that the firm can sell more units only by lowering the price. This contrasts with perfect competition, where the firm faces a horizontal demand curve at the market price.

Question 15

When the demand curve is a downward sloping straight line, the slope of the marginal revenue curve is

Accepted Answer

The marginal revenue curve is twice as steep as the demand curve when the demand curve is a downward sloping straight line. This is because the marginal revenue takes into account both the price effect (selling additional units at a lower price) and the quantity effect (selling more units), leading to a steeper decline in revenue per additional unit sold compared to the demand curve.

Question 16

A non-discriminating monopolist's price equals its marginal revenue only when

Accepted Answer

The answer of A non-discriminating monopolist's price equals its marginal...

Question 17

Assuming demand is linear, the shape of a monopolist's total revenue schedule is a

Accepted Answer

Total revenue for a monopolist initially increases at a decreasing rate and eventually decreases, creating a curve with a decreasing slope from the origin. This is because, in a monopolistic market, to sell more units, the monopolist must lower the price, which affects the revenue from all units sold.

Question 18

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. This firm's marginal revenue will be negative at

Accepted Answer

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

Question 19

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. This firm's total revenue will be maximized at a price of

Accepted Answer

Total revenue is maximized where the elasticity of demand is unitary, which typically occurs at the midpoint of a linear demand curve. In this scenario, without seeing Figure 13.3, the principle holds that the midpoint of a demand curve, where price elasticity of demand equals 1, is where total revenue is maximized. Assuming a linear demand curve and given the choices, $10 is likely the midpoint price, thus maximizing total revenue.

Question 20

When the demand curve is a downward sloping straight line, the quantity at which the demand curve intersects the horizontal (quantity) axis is ________ the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis.

Accepted Answer

When the demand curve is a downward sloping straight line, the marginal revenue curve has the same intercept on the price axis but twice the slope. This means the quantity at which the marginal revenue curve intersects the horizontal axis is twice the quantity at which the demand curve intersects the horizontal axis.

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 10th pound of burritos is

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 sixth pound of burritos is

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. This firm's marginal revenue will be negative 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. 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. This firm's ________ will be maximized at a price of $10.

The Rare Bird Company has a monopoly in the sale of macaws in Iowa. When the Rare Bird Company sells three macaws, its marginal revenue is $30. When the Rare Bird Company sells four macaws, its marginal revenue will be

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. 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 12th pound of burritos is

For a monopolist, if total revenue increases as output decreases, then marginal revenue is

A non-discriminating monopolist maximizes total revenue when its marginal revenue is

For a monopolist, price

For a non-discriminating monopolist to sell one more unit, it must

A monopolist will not produce

The demand curve facing a monopolistic firm is

When the demand curve is a downward sloping straight line, the slope of the marginal revenue curve is

A non-discriminating monopolist's price equals its marginal revenue only when

Assuming demand is linear, the shape of a monopolist's total revenue schedule is a

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. This firm's marginal revenue will be negative 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. This firm's total revenue will be maximized at a price of

When the demand curve is a downward sloping straight line, the quantity at which the demand curve intersects the horizontal (quantity) axis is ________ the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis.