Solved by verified expert :37)
According to the above figure, the maximum
profit the monopolist can receive is
37)
______
A)
$9,000 per day.
B)
$7,500 per day.
C)
$1,500 per day.
D)
0.
38)
According to the above figure, what are
the profits of the firm if it produces 50,000 units?
38)
______
A)
-$5,000 per day
B)
-$17,500 per day
C)
-$10,000 per day
D)
-$7,500 per day
39)
A profit-maximizing monopolist earns an economic loss whenever
39)
______
A)
the price it charges for its product exceeds
average total cost.
B)
it pays taxes to the government on each
unit of output it produces.
C)
it produces along the elastic portion of a
demand curve.
D)
the demand curve lies completely below the
ATC curve.
40)
If the above figure accurately portrays
the market conditions for a given monopolist, we can be assured that the
monopolist
40)
______
A)
will be forced to go out of business in
the long run.
B)
is producing at the level that will
maximize benefit to society.
C)
is making a normal profit.
D)
is a part of a cartel.
41)
Price discrimination refers to
41)
______
A)
charging the same prices to all consumers
but selling them different quantities.
B)
selling a product at different prices,
with the price difference being unrelated to differences in marginal cost.
C)
selling a product at different prices
according to the differences in marginal cost of providing it to different
consumers.
D)
a deliberate effort on the part of a
monopoly producer to confuse consumers.
42)
A monopolist sells a homogeneous good in
several distinct submarkets, and the elasticities of demand differ in these
submarkets. If the monopolist selects the rate of output to sell in each
submarket by equating marginal revenue and marginal cost, then
42)
______
A)
it is not price discriminating, but merely
price differentiating.
B)
customers in markets with more elastic
demand will pay lower prices than customers in markets with less elastic
demand.
C)
customers in markets with more elastic
demand will pay higher prices than customers in markets with less elastic
demand.
D)
all customers in all markets end up paying
the same price.
43)
If different markets for a product
produced by a monopolist can be separated and if the elasticity of demand
differs between the two markets, then the monopolist will
43)
______
A)
be able to make higher profits by using
price discrimination.
B)
charge a single price in all markets.
C)
sell the product in only one of the
markets with inelastic demand curves.
D)
go out of business.
44)
Monopolies are discouraged in the United
States because
44)
______
A)
they are more efficient than other
industries.
B)
they hire too many workers.
C)
they can produce at lower cost in the
short run.
D)
they restrict output and boost prices.
45)
Compared to an efficient perfectly
competitive industry, the monopolist will
45)
______
A)
produce less output at a higher total
cost.
B)
produce more output at a lower price.
C)
produce less output and charge a higher
price.
D)
produce more output at a higher price and
higher profit.
46)
Government policy that attempts to prevent
collusion among the sellers of a product and attempts to prevent restraint of
trade is known as
46)
______
A)
social policy.
B)
goodwill policy.
C)
inherent policy.
D)
antitrust policy.
