Econ 121 MC Quiz, Ch. 9f



1.
Which is an example of a privately-owned monopoly?
A.
the De Beers diamond syndicate
B.
State of Utah Liquor Commission Stores
C.
United States Postal Service
D.
Nebraska State Lottery


2.
Which of the following statements is correct for a monopoly?
A.
The supply curve is the firm's marginal-cost curve above its average variable
B.
Price is not determined by demand and supply, as it is under perfect competition.
C.
Marginal revenue equals price.
D.
Marginal revenue and average revenue are perfectly elastic.
E.
Marginal revenue is greater than price.


3.
The supply curve for a monopolist:
A.
is the portion of the marginal cost curve that lies above the average variable cost curve.
B.
is perfectly price-elastic at the market price.
C.
is upsloping across all relevant ranges of output.
D.
does not exist because there is no unique relationship between price and quantity supplied.


4.
The quantity corresponding to the monopoly price is:
A.
V.
B.
R.
C.
U.
D.
S.
E.
not revealed by the diagram.


5.
In a perfectly competitive labor market, the equilibrium-wage level is determined by:
A.
the interaction of all firms and all unions.
B.
large firms.
C.
large unions.
D.
both large firms and large unions.
E.
supply and demand.


6.
If this diagram portrayed a monopsony model, the equilibrium-employment level would be
A.
indeterminate.
B.
N.
C.
T.
D.
less than M.
E.
M.


7.
A profit-maximizing firm should shut down in the short run if the average revenue it receives is less than:
A.
average variable cost.
B.
average total cost.
C.
average fixed cost.
D.
marginal cost.


8.
The firm achieves its largest net profit by charging the
A.
MC=P price.
B.
marginal-cost price.
C.
full-cost price.
D.
monopoly price.
E.
average-cost price.


9.
Allocative inefficiency due to unregulated monopoly is characterized by the condition:
A.
P = MC.
B.
P = MR.
C.
P > MC.
D.
P > AVC.


10.
If a firm is faced with a downward-sloping demand curve
A.
its marginal revenue equals its average revenue.
B.
its most profitable output is indicated by the point at which MC = AR = P.
C.
its supply curve is its marginal-cost curve above its average variable cost.
D.
it may nevertheless be perfectly competitive.
E.
none of these.



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