ATI PNMicroeconomics QUESTIONS AND
CORRECT ANSWERS 2024- 2025 LATEST
UPDATE//GRADED A+ A n
For which of the following products would price discrimination be easiest? - ANSWER-d. Haircuts
Which of these is a similarity between a monopolist that does not practice price discrimination and a
perfectly competitive firm? - ANSWER-e. Price equals average revenue at all output rates for both types
of firms.
A natural monopoly forms when a firm has: - ANSWER-d. a downward-sloping long-run average cost
curve
The figure below shows the cost and revenue curves for a monopolist. The profit-maximizing level of
output and price for the monopolist are: - ANSWER-d. f units and $d
Which of these is a key difference between a perfectly competitive firm and a monopolist that does not
practice price discrimination? - ANSWER-c. Price is equal to marginal revenue for a perfectly competitive
firm in equilibrium but not for a monopolist
McDonald's makes its unique McRib sandwich "available for a limited time only," usually in the fall. Such
a strategy is likely to - ANSWER-a. increase its marginal value to the consumer
The figure below shows the cost and revenue curves for a monopolist. Total revenue earned by the
monopolist for the profit-maximizing output is - ANSWER-b. d × f
The figure below shows the cost and revenue curves faced by a monopolist. At the profit-maximizing
output level for the monopolist, _____. - ANSWER-b. marginal revenue is equal to marginal cost
,A price-discriminating monopolist divides its customers into two segments based on price elasticity of
demand. If it sells its product for a price of $42 in the market segment where demand is relatively less
price elastic, the price in the market segment where demand is more price elastic will be - ANSWER-c.
less than $42
The supply curve for a monopolist - ANSWER-e. does not exist.
Which of the following can be concluded about a monopolist whose marginal revenue is zero for a
particular output level? - ANSWER-b. Total revenue earned by the monopolist is maximum at that
output level
The table below shows the demand schedule faced by a monopolist and the total cost incurred by it in
producing each output level. The maximum profit earned by the monopolist is _____.
Table 9.5
Price ($) Quantity Total cost ($)
16 0 5.00
15 1 7.00
14 2 8.80
13 3 10.40
12 4 12.20
11 5 14.20
10 6 16.40
9 7 18.80
8 8 21.40
7 9 24.20 - ANSWER-d. $44.20
The figure below shows the cost and revenue curves for a non-discriminating monopolist. The total cost
incurred by the monopolist at the profit-maximizing output is _____. - ANSWER-d. $2,340
, Suppose the marginal revenue for a particular level of a monopolist's output is $40. This implies that -
ANSWER-a. total revenue is increasing for this output range
For a monopolist producing a level of output at which market demand is inelastic, _____. - ANSWER-d. a
decrease in price decreases total revenue
If a perfectly competitive industry is monopolized, consumer surplus - ANSWER-a. can be expected to
decrease
The figure given below depicts the cost and demand conditions facing a profit-maximizing monopolist
that does not discriminate among its customers. The deadweight loss of monopoly equals _____. -
ANSWER-c. $125
A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. Which of the
following can be concluded about the firm's marginal revenue for this output level? - ANSWER-d.
Marginal revenue is less than $10 but more than zero
In the short run, a monopolist will always shut down when - ANSWER-e. total variable cost is greater
than total revenue at all output levels
A monopolist is said to have market power because - ANSWER-b. it faces a downward-sloping demand
curve
Which of the following is true for a monopolist that engages in perfect price discrimination? - ANSWER-
e. Perfect price discrimination allows the monopolist to reap the entire gains from production.
Which of the following would distinguish a competitive firm from a monopolist? - ANSWER-b. The slope
of the demand curve faced by the firm
The figure below shows the cost and revenue curves faced by a profit-maximizing monopolist. Which of
the following areas shown in the figure given below represents consumer surplus under monopoly? -
ANSWER-a. Area a
CORRECT ANSWERS 2024- 2025 LATEST
UPDATE//GRADED A+ A n
For which of the following products would price discrimination be easiest? - ANSWER-d. Haircuts
Which of these is a similarity between a monopolist that does not practice price discrimination and a
perfectly competitive firm? - ANSWER-e. Price equals average revenue at all output rates for both types
of firms.
A natural monopoly forms when a firm has: - ANSWER-d. a downward-sloping long-run average cost
curve
The figure below shows the cost and revenue curves for a monopolist. The profit-maximizing level of
output and price for the monopolist are: - ANSWER-d. f units and $d
Which of these is a key difference between a perfectly competitive firm and a monopolist that does not
practice price discrimination? - ANSWER-c. Price is equal to marginal revenue for a perfectly competitive
firm in equilibrium but not for a monopolist
McDonald's makes its unique McRib sandwich "available for a limited time only," usually in the fall. Such
a strategy is likely to - ANSWER-a. increase its marginal value to the consumer
The figure below shows the cost and revenue curves for a monopolist. Total revenue earned by the
monopolist for the profit-maximizing output is - ANSWER-b. d × f
The figure below shows the cost and revenue curves faced by a monopolist. At the profit-maximizing
output level for the monopolist, _____. - ANSWER-b. marginal revenue is equal to marginal cost
,A price-discriminating monopolist divides its customers into two segments based on price elasticity of
demand. If it sells its product for a price of $42 in the market segment where demand is relatively less
price elastic, the price in the market segment where demand is more price elastic will be - ANSWER-c.
less than $42
The supply curve for a monopolist - ANSWER-e. does not exist.
Which of the following can be concluded about a monopolist whose marginal revenue is zero for a
particular output level? - ANSWER-b. Total revenue earned by the monopolist is maximum at that
output level
The table below shows the demand schedule faced by a monopolist and the total cost incurred by it in
producing each output level. The maximum profit earned by the monopolist is _____.
Table 9.5
Price ($) Quantity Total cost ($)
16 0 5.00
15 1 7.00
14 2 8.80
13 3 10.40
12 4 12.20
11 5 14.20
10 6 16.40
9 7 18.80
8 8 21.40
7 9 24.20 - ANSWER-d. $44.20
The figure below shows the cost and revenue curves for a non-discriminating monopolist. The total cost
incurred by the monopolist at the profit-maximizing output is _____. - ANSWER-d. $2,340
, Suppose the marginal revenue for a particular level of a monopolist's output is $40. This implies that -
ANSWER-a. total revenue is increasing for this output range
For a monopolist producing a level of output at which market demand is inelastic, _____. - ANSWER-d. a
decrease in price decreases total revenue
If a perfectly competitive industry is monopolized, consumer surplus - ANSWER-a. can be expected to
decrease
The figure given below depicts the cost and demand conditions facing a profit-maximizing monopolist
that does not discriminate among its customers. The deadweight loss of monopoly equals _____. -
ANSWER-c. $125
A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. Which of the
following can be concluded about the firm's marginal revenue for this output level? - ANSWER-d.
Marginal revenue is less than $10 but more than zero
In the short run, a monopolist will always shut down when - ANSWER-e. total variable cost is greater
than total revenue at all output levels
A monopolist is said to have market power because - ANSWER-b. it faces a downward-sloping demand
curve
Which of the following is true for a monopolist that engages in perfect price discrimination? - ANSWER-
e. Perfect price discrimination allows the monopolist to reap the entire gains from production.
Which of the following would distinguish a competitive firm from a monopolist? - ANSWER-b. The slope
of the demand curve faced by the firm
The figure below shows the cost and revenue curves faced by a profit-maximizing monopolist. Which of
the following areas shown in the figure given below represents consumer surplus under monopoly? -
ANSWER-a. Area a
