ECON 101 EXAM QUESTIONS WITH
CORRECT ANSWERS ALREADY
PASSED!!
Use the figure above to answer this question. If the market is operating efficiently -
Answer-both A and C are correct.
A monopoly creates a deadweight loss because the monopoly - Answer-produces less
than the efficient quantity.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is perfectly competitive, the
quantity of steak is - Answer-3,000 pounds.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is a monopoly, the quantity of
steak is - Answer-2,000 pounds.
In the above figure, for a single-price monopoly the consumer surplus is equal to the
area - Answer-abP1
In the above figure, a perfectly competitive market will have a price of ________, and a
single-price monopoly will have a price of ________. - Answer-P2 and quantity of Q2;
P1 and quantity of Q1
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is a monopoly, the price of a
pound of steak is - Answer-$12.
When a perfectly competitive industry is taken over by a monopoly, some consumer
surplus is transferred to the monopolist in the form of - Answer-economic profit.
Comparing a perfectly competitive market to a single-price monopoly with the same
costs, we see that - Answer-the perfectly competitive market achieves efficiency in
resource use while the monopoly market does not.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
, the relevant demand and cost curves. When the market is perfectly competitive, the
price of a pound of steak is ________ and when it is a monopoly, the price of a pound
of steak is ________. - Answer-$8; $12
Monopolies are inefficient because, at the profit-maximizing output level - Answer-MB
does not equal MC.
Assume someone organizes all farms in the nation into a monopoly. As a result,
consumer surplus will - Answer-decrease
In the above figure, for a single-price monopoly the deadweight loss is equal to the area
- Answer-bce
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is perfectly competitive, the
price of a pound of steak is - Answer-$8.
A "buy one, get one for half price" promotion is an example of - Answer-price
discriminating among units of a good.
With perfect price discrimination, the level of output - Answer-is the same as the amount
produced in a perfectly competitive market.
The table above gives the demand for a monopolist's output. What is the marginal
revenue when output is increased from 5 to 6 units? - Answer--$2
Use the figure above to answer this question. Pam gives the only piano lessons in town.
In order to maximize profit, Pam should charge ________ per lesson and will earn a
total economic profit of ________. - Answer-$40; $40
Use the figure above to answer this question. Pam gives the only piano lessons in town.
In order to maximize profit, Pam should give ________ per day and charge ________
per lesson. - Answer-4; $40
The above table gives the demand schedule for a monopoly. The demand is inelastic
over the entire price range between - Answer-$3 and $1.
If the single restaurant in an Eastern Kentucky town is currently charging a price for its
ham and eggs where the demand is unit elastic, its marginal revenue for ham and eggs
is - Answer-zero
Suppose the Busy Bee Caf is the monopoly producer of hamburgers in Hugo,
Oklahoma. The above figure represents the demand, marginal revenue, and marginal
cost curves for this establishment. What quantity will the Busy Bee produce to maximize
its profit? - Answer-20 hamburgers per hour
CORRECT ANSWERS ALREADY
PASSED!!
Use the figure above to answer this question. If the market is operating efficiently -
Answer-both A and C are correct.
A monopoly creates a deadweight loss because the monopoly - Answer-produces less
than the efficient quantity.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is perfectly competitive, the
quantity of steak is - Answer-3,000 pounds.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is a monopoly, the quantity of
steak is - Answer-2,000 pounds.
In the above figure, for a single-price monopoly the consumer surplus is equal to the
area - Answer-abP1
In the above figure, a perfectly competitive market will have a price of ________, and a
single-price monopoly will have a price of ________. - Answer-P2 and quantity of Q2;
P1 and quantity of Q1
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is a monopoly, the price of a
pound of steak is - Answer-$12.
When a perfectly competitive industry is taken over by a monopoly, some consumer
surplus is transferred to the monopolist in the form of - Answer-economic profit.
Comparing a perfectly competitive market to a single-price monopoly with the same
costs, we see that - Answer-the perfectly competitive market achieves efficiency in
resource use while the monopoly market does not.
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
, the relevant demand and cost curves. When the market is perfectly competitive, the
price of a pound of steak is ________ and when it is a monopoly, the price of a pound
of steak is ________. - Answer-$8; $12
Monopolies are inefficient because, at the profit-maximizing output level - Answer-MB
does not equal MC.
Assume someone organizes all farms in the nation into a monopoly. As a result,
consumer surplus will - Answer-decrease
In the above figure, for a single-price monopoly the deadweight loss is equal to the area
- Answer-bce
Suppose the grocery store market in Kansas City is perfectly competitive. Then one
store buys all the others and becomes a single-price monopoly. The figure above shows
the relevant demand and cost curves. When the market is perfectly competitive, the
price of a pound of steak is - Answer-$8.
A "buy one, get one for half price" promotion is an example of - Answer-price
discriminating among units of a good.
With perfect price discrimination, the level of output - Answer-is the same as the amount
produced in a perfectly competitive market.
The table above gives the demand for a monopolist's output. What is the marginal
revenue when output is increased from 5 to 6 units? - Answer--$2
Use the figure above to answer this question. Pam gives the only piano lessons in town.
In order to maximize profit, Pam should charge ________ per lesson and will earn a
total economic profit of ________. - Answer-$40; $40
Use the figure above to answer this question. Pam gives the only piano lessons in town.
In order to maximize profit, Pam should give ________ per day and charge ________
per lesson. - Answer-4; $40
The above table gives the demand schedule for a monopoly. The demand is inelastic
over the entire price range between - Answer-$3 and $1.
If the single restaurant in an Eastern Kentucky town is currently charging a price for its
ham and eggs where the demand is unit elastic, its marginal revenue for ham and eggs
is - Answer-zero
Suppose the Busy Bee Caf is the monopoly producer of hamburgers in Hugo,
Oklahoma. The above figure represents the demand, marginal revenue, and marginal
cost curves for this establishment. What quantity will the Busy Bee produce to maximize
its profit? - Answer-20 hamburgers per hour
