Quiz 9: B--Monopoly
Business
Q 1Q 1
Adam Matsumi is an attorney who can charge legal fees above the competitive level because entry of new competitors is made more difficult by the need to hold a(n)
A)state license
B)patent
C)essential resource
D)economy of scale
E)copyright
Free
Multiple Choice
A
Q 2Q 2
Which of the following is not an example of De Beers trying to increase consumer demand?
A)sending the marketing message that a diamond last forever and so should love
B)ads that illustrate that a diamond should remain in the family and not be sold
C)informing potential customers about how diamonds lose monetary value over time
D)introducing the idea of the diamond engagement ring
E)the "spirit ring" as a sign of independence
Free
Multiple Choice
C
Q 3Q 3
Consumer concern about "blood diamonds" or "conflict diamonds" may have caused a drop in De Beers sales.
Free
True False
True
Q 4Q 4
Which of the following is an example of a local monopoly?
A)a restaurant at a rural crossroads
B)Alcoa during the 19th century
C)De Beers Consolidated Mines
D)AT&T
E)U.S.Postal Service
Free
Multiple Choice
Q 5Q 5
Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in
A)long lunches
B)corporate jets
C)plush offices
D)None of the answers is correct.
E)All of the answers are correct.
Free
Multiple Choice
Q 6Q 6
Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is
A)equally elastic
B)unitary elastic
C)more elastic
D)less elastic
E)not a factor in the cost of airline tickets
Free
Multiple Choice
Q 7Q 7
Which of the following is not an example of price discrimination?
A)IBM charges business users of its laser printer more than home users
B)Intel offered faster and slower versions of a computer chip
C)An amusement park charges the same admission fee to local residents and out-of-towners
D)Adobe stripped some features from Photoshop to offer a cheaper version
E)Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail
Free
Multiple Choice
Q 8Q 8
Cell phone companies offer pricing plan alternatives in order to convert some
A)consumer surplus into profit
B)producer surplus into profit
C)economic profit into normal profit
D)profit into consumer surplus
E)consumer surplus into deadweight loss
Free
Multiple Choice
Q 9Q 9
Exhibit 9-20 In Exhibit 9-20, a non-discriminating monopolist will charge what price?
A)P1
B)P2
C)P3
D)either P1 or P2
E)unable to tell from the information given
Free
Multiple Choice
Q 10Q 10
Exhibit 9-20 In Exhibit 9-20, how does market segment A differ from market segment B?
A)demand is relatively more elastic in segment A than in segment B
B)demand is relatively more income elastic in segment A than in segment B
C)demand is relatively more income elastic in segment B than in segment A
D)there are more consumers in segment A than in segment B
E)demand is relatively more inelastic in segment A than in segment B
Free
Multiple Choice
Q 11Q 11
Exhibit 9-20 In Exhibit 9-20, a price discriminating monopolist will charge what price?
A)P1 in segments A and B
B)P2 in segments A and B
C)P3 in segments A and B
D)P1 in segment A and P2 in segment B
E)unable to be determined
Free
Multiple Choice
Q 12Q 12
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The output in a competitive industry would be
A)2 bicycles
B)3 bicycles
C)4 bicycles
D)5 bicycles
E)6 bicycles
Free
Multiple Choice
Q 13Q 13
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The output for a monopolist would be
A)2 bicycles
B)3 bicycles
C)4 bicycles
D)5 bicycles
E)6 bicycles
Free
Multiple Choice
Q 14Q 14
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The market price in a competitive market would be
A)$10
B)$15
C)$20
D)$25
E)$30
Free
Multiple Choice
Q 15Q 15
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The market price in a monopolist market would
A)$10
B)$15
C)$20
D)$25
E)$30
Free
Multiple Choice
Q 16Q 16
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The consumer surplus in a competitive market would be
A)$10
B)$20
C)$30
D)$40
E)$50
Free
Multiple Choice
Q 17Q 17
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The consumer surplus in a monopolist market would be
A)$10
B)$20
C)$30
D)$40
E)$50
Free
Multiple Choice
Q 18Q 18
Exhibit 9-21 In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The deadweight loss due to monopoly would be
A)$10
B)$20
C)$30
D)$40
E)$50
Free
Multiple Choice