ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
Which of the following would be most likely to have monopoly powers?
A municipal water company
Which of the following is an example of a barrier to entry?
Larry obtains a copyright for the new computer game that he invented.
The defining characteristic of natural monopoly is?
Economies of scale over the relevant range of output.
Suppose a firm has a monopoly on the scale of a computer game and faces a downward-sloping
demand curve. When selling the 36th game, the firm will always receive?
Less marginal revenue on the 36th game than it received on the 35th game.
A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output
for $43.60 per unit. The marginal revenue of output is?
-$376.40
Which of the following statements is correct?
Panel B represents the typical demand curve for a perfectly competitive firm, and Panel A represents the
typical demand curve for a monopoly.
In order to maximize profits, the monopolist should produce?
12 units
In order to maximize profits, the monopolist should charge a price of?
$20
If the monopolist produces 5 units, what is it average revenue?
$18
What price should the firm charge to maximize profit?
$7
A monopolist will choose to increase output when?
At the present level of output, marginal revenue exceeds marginal cost.
VERSION, GRADED A+.
Which of the following would be most likely to have monopoly powers?
A municipal water company
Which of the following is an example of a barrier to entry?
Larry obtains a copyright for the new computer game that he invented.
The defining characteristic of natural monopoly is?
Economies of scale over the relevant range of output.
Suppose a firm has a monopoly on the scale of a computer game and faces a downward-sloping
demand curve. When selling the 36th game, the firm will always receive?
Less marginal revenue on the 36th game than it received on the 35th game.
A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output
for $43.60 per unit. The marginal revenue of output is?
-$376.40
Which of the following statements is correct?
Panel B represents the typical demand curve for a perfectly competitive firm, and Panel A represents the
typical demand curve for a monopoly.
In order to maximize profits, the monopolist should produce?
12 units
In order to maximize profits, the monopolist should charge a price of?
$20
If the monopolist produces 5 units, what is it average revenue?
$18
What price should the firm charge to maximize profit?
$7
A monopolist will choose to increase output when?
At the present level of output, marginal revenue exceeds marginal cost.
