Biology Forums - Study Force

How does a monopolist choose the profit maximizing output-price combination?

QUESTION 2

One of the popular myths about monopoly is that:
 a. a monopolist is the single seller of a particular commodity.
  b. a monopolist can charge any price for his/her good.
  c. a monopolist is a price maker.
  d. a monopolist may earn positive profits even in the long run.
  e. a monopolist faces the market demand curve.

QUESTION 3

Which of the following is the worst-case scenario for a consumer?
 a. Perfect competition
 b. Perfect price discrimination
  c. Single-price monopoly
 d. Peak load pricing

QUESTION 4

Under the Bretton Woods system, international debts were settled in:
 a. gold.
  b. U.S. dollars.
  c. British pounds.
  d. silver.
  e. German marks.

QUESTION 5

Identify some of the basic assumptions of monopoly.

QUESTION 6

A monopolist can charge a high price if:
 a. the quantity demanded of its product is positively related to price.
  b. the demand for its product is relatively price-elastic.
  c. the demand curve for its product is negatively sloped.
  d. the demand for its product is relatively price-inelastic.
  e. there exist a large number of substitutes for its product.

QUESTION 7

In perfect price discrimination, which of the following are reduced to zero?
 a. Consumer surplus and producer surplus
  b. Producer surplus and deadweight loss
  c. Consumer surplus and deadweight loss
  d. Producer surplus and total welfare

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Makes more sense now, TY