1. ECO1050 u07q1 Question 1 (Points: 2) We define a monopoly as a market with wh
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Question
1. ECO1050 u07q1 Question 1 (Points: 2)We define a monopoly as a market with what? (2 points).
1. Many suppliers with barriers to entry.
2. One supplier and no barriers to entry.
3. Many suppliers with no barriers to entry.
4. One supplier with barriers to entry.
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2. ECO1050 u07q1 Question 2 (Points: 2)
Which of the following is true for a natural monopoly? (2 points).
1. Economies of scale cause legal barriers of entry.
2. Economies of scale exist over the entire long-run average cost curve.
3. Economies of scale, constant returns to scale, and diseconomies of scale exist over the entire long-run average cost curve.
4. Economies of scale and diseconomies of scale exist over the entire long-run average cost curve.
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3. ECO1050 u07q1 Question 3 (Points: 3)
Why does DeBeers have a monopoly in the diamond market? (3 points).
1. Because it has been granted a government license.
2. Because it buys up a significant portion of diamond resources.
3. Because it can supply the entire market at a lower price than two or more firms.
4. Because it has been granted a public franchise.
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4. ECO1050 u07q1 Question 4 (Points: 2)
What is a price-discriminating monopolist? (2 points).
1. A firm that has a license to sell the product.
2. A firm that has control over the resources used to produce the product.
3. A firm that sells its output at a single price to all of its customers.
4. A firm that sells different units of a good or service at different prices.
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5. ECO1050 u07q1 Question 5 (Points: 3)
The above table gives the demand schedule for a monopoly. Where is the demand elastic? (3 points).
1. Between $3 and $1.
2. Between $6 and $4.
3. Between $5 and $1.
4. Between $6 and $1.
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6. ECO1050 u07q1 Question 6 (Points: 3)
The above table gives the demand schedule for a monopoly. Where is the demand inelastic? (3 points).
1. Between $3 and $1.
2. Between $5 and $1.
3. Between $6 and $4.
4. Between $6 and $1.
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7. ECO1050 u07q1 Question 7 (Points: 2)
To maximize its profit, a single-price monopolist will produce an output level where its marginal revenue is what? (2 points).
1. Equal to its marginal cost.
2. Less than its marginal cost.
3. In excess of its marginal cost.
4. Equal to zero.
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8. ECO1050 u07q1 Question 8 (Points: 3)
Suppose the Busy Bee Cafe is a monopolist in the hamburger market in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What quantity should the Busy Bee Café produce to maximize its profit? (3 points).
1. None of the above answers is correct.
2. Fifty hamburgers per hour.
3. Twenty hamburgers per hour.
4. Thirty hamburgers per hour.
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9. ECO1050 u07q1 Question 9 (Points: 3)
Suppose the Busy Bee Cafe is a monopolist in the hamburger market in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What price should the Busy Bee Café charge to maximize its profit? (3 points).
1. $1.00 for a hamburger.
2. $2.00 for a hamburger.
3. $3.00 for a hamburger.
4. $5.00 for a hamburger.
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10. ECO1050 u07q1 Question 10 (Points: 2)
Compared to a perfectly competitive industry, what output will a single-price monopolist produce? (2 points).
1. Less output.
2. More output.
3. Some amount that might be more, less, or the same, depending on whether the monopolist's marginal revenue curve lies above, below, or on its demand curve.
4. The same output.
Explanation / Answer
1. ECO1050 u07q1 Question 1 (Points: 2)
We define a monopoly as a market with what? (2 points).
4. One supplier with barriers to entry.
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2. ECO1050 u07q1 Question 2 (Points: 2)
Which of the following is true for a natural monopoly? (2 points).
1. Economies of scale cause legal barriers of entry.
3. ECO1050 u07q1 Question 3 (Points: 3)
Why does DeBeers have a monopoly in the diamond market? (3 points).
2. Because it buys up a significant portion of diamond resources.
4. ECO1050 u07q1 Question 4 (Points: 2)
What is a price-discriminating monopolist? (2 points).
4. A firm that sells different units of a good or service at different prices.
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5. ECO1050 u07q1 Question 5 (Points: 3)
The above table gives the demand schedule for a monopoly. Where is the demand elastic? (3 points).
sorry no graph but it is the horizontal part
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6. ECO1050 u07q1 Question 6 (Points: 3)
The above table gives the demand schedule for a monopoly. Where is the demand inelastic? (3 points).
no graph but the is the verticle part
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7. ECO1050 u07q1 Question 7 (Points: 2)
To maximize its profit, a single-price monopolist will produce an output level where its marginal revenue is what? (2 points).
1. Equal to its marginal cost.
8. ECO1050 u07q1 Question 8 (Points: 3)
Suppose the Busy Bee Cafe is a monopolist in the hamburger market in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What quantity should the Busy Bee Café produce to maximize its profit? (3 points).
sorry no graph
9. ECO1050 u07q1 Question 9 (Points: 3)
Suppose the Busy Bee Cafe is a monopolist in the hamburger market in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What price should the Busy Bee Café charge to maximize its profit? (3 points).
sorry no graph
Save Answer
10. ECO1050 u07q1 Question 10 (Points: 2)
Compared to a perfectly competitive industry, what output will a single-price monopolist produce? (2 points).
sorry no graph
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