51.A monopolist can charge a high price if: a.the quantity demanded

Question : 51.A monopolist can charge a high price if: a.the quantity demanded : 1413823


51.A monopolist can charge a high price if:

a.the quantity demanded is positively related to price.

b.the demand is relatively price-elastic.

c.the demand curve is negatively sloped.

d.the demand is relatively price-inelastic.

e.there exist a large number of substitutes.

52.One of the popular myths about monopoly is that:

a.a monopolist is the single seller of a particular commodity.

b.a monopolist can charge any price for his/her good.

c.a monopolist is a price maker.

d.a monopolist may earn positive profits even in the long run.

e.a monopolist faces the market demand curve.

53.Identify the correct statement.

a.A monopolist’s pricing decision is limited by the demand for its product.

b.A monopolist is able to choose any price and quantity combination that it desires.

c.A monopolist can increase its profits by increasing price if the demand for its good is relatively elastic.

d.A monopolist does not suffer losses even in the short run.

e.A monopolist is not able to reap positive profits in the long run.

54.The ability of a firm to charge different customers different prices is called _____:

a.price ceiling.

b.price discrimination.

c.predatory pricing.

d.price flooring.

e.basing point pricing.

55.Which of the following is true of a firm that can successfully practice price discrimination?

a.Its total revenue is often reduced.

b.It appropriates a part of the consumer surplus.

c.It has no way of distinguishing between types of customers.

d.It has no market power in the industry.

e.It must be a perfectly competitive firm.

56.To practice price discrimination, a firm:

a.must be facing a relatively elastic demand curve.

b.must have customers with different elasticities of demand.

c.must not be able to distinguish between customers based on elasticities of demand.

d.must not be able to prevent resale of the product.

e.must be a price taker.

57.Price discrimination is best described as a monopolist:

a.selling a product at the fixed market determined price.

b.charging buyers an excessive price for the product.

c.charging different customers different prices when the costs are equal.

d.selling a product for different prices during two different periods of time.

e.charging same prices to different customers when the costs are different.

58.Which of the following is not a necessary condition for price discrimination?

a.The firm must be a price maker.

b.The firm must be able to distinguish between customers.

c.The firm must be able to prevent resale between customers.

d.The firm must be able to product homogenous products.

e.The firm must be facing a downward-sloping demand curve.

59.Grocery store coupons, mail-in rebates, senior discounts, and in-state versus out-of-state tuition fees are all examples of:

a.government intervention.

b.price neutrality.

c.arbitrage pricing.

d.price discrimination.

e.illegal business practice.

NARRBEGIN: Table 10.5

The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets.

Table 10.5

OutputMR in Market XMR in Market Y








60.Refer to Table 10.5. How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?

a.4 units in market X; 1 unit in market Y

b.3 units in market X; 2 units in market Y

c.2 units in market X; 3 units in market Y

d.Nothing in market X; 5 units in market Y

e.5 units in market X; nothing in market Y



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Economics 1 Year Ago 27 Views
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