Quiz 12
1. A firm has market power
A. When it can profitably charge any price of its choosing
B. When it is characterized as a price taker
C. When it can profitably charge a price that is above its marginal cost
D. Only when it is the sole firm producing in a market
2. A monopoly market is
A. A market with many sellers
B. A market with a single seller
C. A market with a few sellers
D. B and C
3. An oligopoly market is
A. A market with many sellers
B. A market with a single seller
C. A market with a few sellers
D. B and C
4. Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand
function is
, where P is the price, in dollars, of a cubic yard of concrete
and Q is the number of cubic yards sold per year. What is KGC's inverse demand function?
A.
B.
C.
D.
5. Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand
function is
, where P is the price, in dollars, of a cubic yard of concrete
and Q is the number of cubic yards sold per year. What is KGC's marginal revenue function?
A.
B.
C.
D.
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Chapter 17 - Monopoly
6. Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand
function is
, where P is the price, in dollars, of a cubic yard of concrete
and Q is the number of cubic yards sold per year. What is KGC's marginal revenue when it
sells 5,000 cubic years of concrete per year?
A. $37.5
B. $25
C. $50
D. $0
7. Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand
function is
, where P is the price, in dollars, of a cubic yard of concrete
and Q is the number of cubic yards sold per year. What price does KGC charge per unit when
it sells 5,000 cubic years of concrete per year?
A. $12.5
B. $25
C. $37.5
D. $50
8. Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand
function is
, where P is the price, in dollars, of a cubic yard of concrete
and Q is the number of cubic yards sold per year. What is the difference between price and
marginal revenue when KGC sells 5,000 cubic years of concrete per year?
A. $12.5
B. $25
C. $37.5
D. $50
9. The more elastic is the demand for a product
A. The greater the difference between marginal revenue and price
B. The closer is marginal revenue to the price
C. The more a firm must reduce its price to increase its sales
D. A and C
10. When a monopolist maximizes its profit by selling a positive amount
A. Its marginal revenue must equal its marginal cost at that quantity
B. Its marginal revenue must exceed its marginal cost at that quantity
C. Its marginal revenue must be less than its marginal cost at that quantity
D. Its marginal revenue must be equal to zero
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Chapter 17 - Monopoly
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