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economics data bank




Question;81);For a monopoly, marginal revenue is equal to;A);the price of the product.;B);the amount people buy between two prices.;C);the amount people buy at a given price.;D);the change in total revenue brought about by a one-unit increase in quantity sold.;E);the price multiplied by the quantity sold.;81);82);A single-price;monopoly;A);is able to raise its price as high as it wants and consumers must still buy;from it because it;is;a monopoly.;B);can lower its price for only a few select consumers if it wants to increase its;sales.;C);must practice price discrimination.;D);must lower the price for all customers if it wants to increase its sales.;E);will set its price equal to a consumer's willingness to pay.;82);83);In order for a hotel to successfully price discriminate so that senior citizens;are given a discount;the;hotel must be able to;A);lower its prices to younger customers too.;B);prevent senior citizens from reselling their rooms to younger customers.;C);offset the economic loss from charging senior citizens a lower price by;lowering the;marginal;cost of renting rooms to senior citizens.;D);shift its demand curve rightward.;E);determine if a senior citizen can pay a higher price.;83);84);A price-discriminating;monopoly is a monopoly that;A);has a license to sell the product.;B);sells its output at a single price to all of its customers.;C);illegally charges different customers different prices for the good it;produces.;D);sells different units of a good or service at different prices.;E);has control over the resources used to produce the product.;84);85);A single-price;monopoly;A);sets a single price for all consumers.;B);asks each consumer what single price they would be willing to pay.;C);sets a single, different price for each consumer.;D);sells each unit of its output for the single, highest price that the buyer of;that unit is;willing;to pay.;E);sets a single, different price for each of two different groups.;85);86);Which of the following statements is correct?;A);Because a monopoly is the only firm in the market, its marginal revenue curve;must be the;same;as the market demand curve.;B);Monopolies are guaranteed to earn an economic profit.;C);The market demand and the firm's demand are the same for a monopoly.;D);Monopolies have perfectly inelastic demand for the product sold.;E);Because a monopoly is the only firm in the market, its supply curve is the same;as the;market;demand curve.;86);87);Patents;A);remove legal barriers to entry.;B);are prohibited in the United States.;C);are a legal barrier to entry.;D);decrease the incentive to innovate.;E);create economies of scale.;87);88);A natural monopoly's average cost curve;i.;intersects the demand curve while the average cost curve slopes downward.;ii.;reaches its minimum before it intersects the demand curve.;iii.;intersects the demand curve below the intersection of the marginal cost curve;and the;demand;curve.;A);i, ii, and iii.;B);ii only.;C);i and iii.;D);iii only.;E);i only.;88);89);For a natural monopoly, economies of scale;A);as well as constant returns to scale and diseconomies of scale exist along the;long-run;average;cost curve at least until it crosses the market demand curve..;B);are totally absent.;C);and diseconomies of scale exist along the long-run average cost curve at least until it;crosses;the market demand curve.;D);lead to a legal barrier to entry.;E);exist along the long-run;average cost curve at least until it crosses the market demand;curve.;89);90);A natural monopoly;A);occurs when one firm controls a natural resource.;B);arises when one firm can meet the entire market demand at a lower average total;cost than;two;or more firms.;C);arises as a result of legal barriers to entry.;D);Both answers A and B are correct.;E);Both answers A and C are correct.;90);91);A natural barrier to entry is defined as a barrier that arises because of;A);technology that allows economies of scale over the entire relevant range of;output.;B);patents or licenses that exclude others from producing a good or service.;C);many firms producing the good and thereby allowing choice for all consumers.;D);one firm owning a key natural resource.;E);anticompetitive practices by a firm that keep other firms from producing.;91);92);A monopoly;A);must determine the price it will charge.;B);cannot price discriminate because such a pricing strategy is illegal in the United;States.;C);faces extensive competition from firms making close substitutes.;D);has no control over the price it must charge.;E);Both answers B and C are correct.;92);93);One of the requirements for a monopoly is that;A);products are high priced.;B);there is a unique product with no close substitutes.;C);there are several close substitutes for the product.;D);there is no barrier to entry.;E);the product cannot be produced by small firms.;93);94);A monopoly is a market with;A);no barriers to entry.;B);many substitutes.;C);one supplier.;D);many suppliers each producing an identical product.;E);many suppliers each producing a slightly different product.;94);95);Technology reduces the average cost of production, so in the long run;i.;perfectly competitive firms produce at a lower average cost.;ii.;the market price of the good falls.;iii.;firms with older plants either exit the market or adopt the new technology.;A);i and ii.;B);i only.;C);iii only.;D);i and iii.;E);i, ii, and iii.;95);96);When a firm adopts new technology, generally its;A);cost curves are unaffected.;B);cost curves shift downward.;C);production permanently decreases.;D);supply curve shifts leftward.;E);cost curves shift upward.;96);97);Suppose a perfectly competitive market is in long-run equilibrium with a price of $12. Then;there;is a permanent increase in demand. As a result, in the short run the market;price;and;in the long run the number of firms ________ and the price is ________ the;price was in the;short;run.;A);falls, decreases, is equal to;B);rises, does not change, lower than;C);rises, increases, higher than;D);rises, increases, lower than;E);rises, does not change, is equal to;97);98);Keith is a perfectly competitive carnation grower. The market price is $2 per;dozen carnations.;Keith's;average total cost to grow carnations is $2.50 per dozen. In the long run;Keith will;A);continue to earn an economic profit.;B);raise his price to more than $2.50 per dozen carnations.;C);raise his price to $2.50 per dozen carnations.;D);exit the industry if the price and his costs do not change.;E);incur an economic loss.;98);21;99);In the long run, existing firms exit a perfectly competitive market;A);only if economic profits are zero.;B);only if they incur an economic loss.;C);if they earn a positive economic profit.;D);if they either earn only a normal profit or if they incur an economic loss.;E);if normal profits are greater than zero.;99);100);Suppose a perfectly competitive market is in short-run equilibrium. Firms that are incurring;a;economic loss ________.;A);persistent, exit the industry and shift the market supply curve rightward;B);temporary, decrease their production but definitely stay open;C);persistent, exit the industry and shift the market supply curve leftward;D);temporary, exit the industry;E) persistent, increase their output to increase their profit


Paper#57942 | Written in 18-Jul-2015

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