Which of the following is TRUE?
Select one:
a. Monopoly results in a higher quantity of output being sold compared with perfect competition.
b. Price discrimination occurs when there are differences in prices that reflect differences in marginal cost.
c. Charging all customers the same price when costs vary can actually be a case of price discrimination.
d. Price discrimination guarantees that the monopolist will make a profit.
Which of the following statements is TRUE?
Select one:
a. At the monopolist's equilibrium, resources are being efficiently allocated.
b. With a monopoly, the value to society of the last unit produced is less than it's production cost.
c. Monopolists raise the price and restrict production, compared to a competitive situation.
d. A monopolist always produces a higher level of output than would be produced if the market were competitive.
Which of the following is TRUE?
Select one:
a. Monopoly results in a higher quantity of output being sold compared with perfect competition.
b. Price discrimination occurs when there are differences in prices that reflect differences in marginal cost.
c. Charging all customers the same price when costs vary can actually be a case of price discrimination.
d. Price discrimination guarantees that the monopolist will make a profit.
Which of the following statements is TRUE?
Select one:
a. At the monopolist's equilibrium, resources are being efficiently allocated.
b. With a monopoly, the value to society of the last unit produced is less than it's production cost.
c. Monopolists raise the price and restrict production, compared to a competitive situation.
d. A monopolist always produces a higher level of output than would be produced if the market were competitive.
Related textbook solutions
Related questions
21)
Compared to the results in a perfectly competitive market, a monopoly does which of the following?
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It charges a higher price. |
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It charges a price greater than the marginal cost. |
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It produces less output. |
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All of the above |
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None of the above |
22)
"X-inefficiency" refers to the idea that
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government restrictions on competition create a monopoly, which results in inefficiency. |
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the cost of rent-seeking activity should be added to the welfare cost of monopoly. |
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Generation X is less efficient due to a lack of competitive spirit. |
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a lack of competitive pressure results in a monopoly not keeping its costs down to the lowest possible level. |
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price discrimination results in inefficiently low cross-elasticities of demand. |
23)
Firms in which of the following market structures can engage in price discrimination?
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monopoly |
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oligopoly |
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monopolistic competition |
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All of the above |
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None of the above |
24)
Monopolistic competition and perfect competition are in all of the following ways except
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Barriers to entry are low in both |
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There are many firms in both |
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Firms in both produce the output level where MR=MC |
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Nonprice competition is important in both |
25)
To get rid of excess capacity from the monopolistic competition in the long run, what would have to be given up?
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Free entry and exit. |
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economic rent |
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resource allocative efficiency |
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differentiated product |
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productive efficiency |
