Question 10: The amount of output a monopolist produces is: Always more than its

Question

Question 10: The amount of output a monopolist produces is: Always more than its cost minimizing output level Always less than its cost minimizing output level Always the same as its cost minimizing output level D. More than, less than, or as much as its cost minimizing output level Question 11: A water company serve company faces an increasing cost of extracting water as the reservoir is being used. The should charge residents: s the residents of a city by pumping underground water. The water company A. A higher price per cubic meter of water, once their consumption exceeds a specific amount. This pricing strategy is the result of price discrimination This pricing strategy is the result of price discrimination This pricing strategy is the result of differences in production costs This pricing strategy reflects consumers' dimini B. A lower price per cubic meter of water, once their consumption exceeds a specific amount. C. A higher price per cubic meter of water, once their consumption exceeds a specific amount. D. A lower price per cubic meter of water, once their ir consumption exceeds a specific amount. shing willingness to pay for additional units of water Question 12 Which of the following firms is most likely to be a monopoly? A local restaurant B A local electricity company C. A local drug store D. A local clothing store

Explanation / Answer

Ans 10)

The quantity produced by Monopolist is always less than that of perfectly competitve firm

Hence Quantity produced by monopolist creates deadweight loss therefore option B is correct response

Ans 11)

Price idscrimination is main purpose so that company can charge higher price to such consumers

Hene option C is correct response

Ans 12)

Option B is very correct

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