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ECON 247 Quiz 8 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
Correct
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Question text
Suppose a certain firm has a monopoly on electricity. To sell the 100th unit of electricity, what must
the firm experience?
Select one:
a. less marginal revenue on the 100th unit of electricity than it experienced on the 99th
unit
b. more average revenue on the 100th unit of electricity than it experienced on the
99th unit
c. less marginal cost on the 100 units of electricity than it experienced on the first 99
units
d. more marginal revenue on the 100th unit of electricity than it experienced on the 99th unit
Feedback
Your answer is correct.
The correct answer is: less marginal revenue on the 100th unit of electricity than it experienced on the 99th
unit
Question 2
Correct
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Question text
For a profit-maximizing monopolist, when should output be increased to enhance economic well-
being?
Select one:
a. as long as average revenue exceeds marginal cost
b. as long as average revenue exceeds average total cost
c. as long as marginal revenue exceeds marginal cost
d. as long as marginal revenue exceeds average total cost
Feedback
Your answer is correct.
The correct answer is: as long as marginal revenue exceeds marginal cost
Question 3
Correct
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For a monopoly market, what is the definition of total surplus?
Select one:
a. the value of the good to producers minus the cost incurred by consumers
b. the value of the good to producers plus the cost incurred by consumers
c. the value of the good to consumers minus the costs of producing the good
d. the value of the good to consumers plus the cost of producing the good
Feedback
Your answer is correct.
The correct answer is: the value of the good to consumers minus the costs of producing the good
Question 4
Correct
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Question text
If many good substitutes exist for a competitive firm’s product, what type of demand curve does it face?
Select one:
a. unit elastic
b. perfectly inelastic
c. perfectly elastic
d. inelastic only over a certain region
Feedback
Your answer is correct.
The correct answer is: perfectly elastic
Question 5
Correct
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Question text
How do economists assume that monopolists behave?
Select one:
a. as cost minimizers
b. as profit maximizers
c. as price maximizers
d. as output maximizers
ECON 247 Quiz 8 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Suppose a certain firm has a monopoly on electricity. To sell the 100th unit of electricity, what must
the firm experience?
Select one:
a. less marginal revenue on the 100th unit of electricity than it experienced on the 99th
unit
b. more average revenue on the 100th unit of electricity than it experienced on the
99th unit
c. less marginal cost on the 100 units of electricity than it experienced on the first 99
units
d. more marginal revenue on the 100th unit of electricity than it experienced on the 99th unit
Feedback
Your answer is correct.
The correct answer is: less marginal revenue on the 100th unit of electricity than it experienced on the 99th
unit
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
, lOMoAR cPSD| 63316909
Question text
For a profit-maximizing monopolist, when should output be increased to enhance economic well-
being?
Select one:
a. as long as average revenue exceeds marginal cost
b. as long as average revenue exceeds average total cost
c. as long as marginal revenue exceeds marginal cost
d. as long as marginal revenue exceeds average total cost
Feedback
Your answer is correct.
The correct answer is: as long as marginal revenue exceeds marginal cost
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
For a monopoly market, what is the definition of total surplus?
Select one:
a. the value of the good to producers minus the cost incurred by consumers
b. the value of the good to producers plus the cost incurred by consumers
c. the value of the good to consumers minus the costs of producing the good
d. the value of the good to consumers plus the cost of producing the good
Feedback
Your answer is correct.
The correct answer is: the value of the good to consumers minus the costs of producing the good
Question 4
Correct
Mark 1.00 out of 1.00
, lOMoAR cPSD| 63316909
Flag question
Question text
If many good substitutes exist for a competitive firm’s product, what type of demand curve does it face?
Select one:
a. unit elastic
b. perfectly inelastic
c. perfectly elastic
d. inelastic only over a certain region
Feedback
Your answer is correct.
The correct answer is: perfectly elastic
Question 5
Correct
Mark 1.00 out of 1.00
Flag question
Question text
How do economists assume that monopolists behave?
Select one:
a. as cost minimizers
b. as profit maximizers
c. as price maximizers
d. as output maximizers
