Monopoly Practice Quiz

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Monopoly Practice Quiz

Directions-Place a piece of paper on your screen to cover the answers as you quiz yourself

The nondiscriminating monopolist's demand curve:

A) is less elastic than a purely competitive firm's demand curve.

B) is perfectly elastic.

C) coincides with its marginal revenue curve.

D) is perfectly inelastic.

Answer: A

Type: A Topic: 3 E: 441-442 MI: 197-198

If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue:

A) may be either greater or less than $35. C) will be less than $35.

B) will also be $35. D) will be greater than $35.

Answer: C

Type: A Topic: 3 E: 441-442 MI: 197-198

A nondiscriminating pure monopolist's demand curve:

A) is perfectly inelastic. C) lies above its marginal revenue curve.

B) coincides with its marginal revenue curve. D) lies below its marginal revenue curve.

Answer: C

Type: A Topic: 3 E: 441-442 MI: 197-198

For an imperfectly competitive firm:

A) total revenue is a straight, upsloping line because a firm's sales are independent of product price.

B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold.

C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.

D) the marginal revenue curve lies below the demand curve because any reduction in price applies only to the extra unit sold.

Answer: C

Type: A Topic: 3 E: 442-443 MI: 198-199

For a nondiscriminating imperfectly competitive firm:

A) the marginal revenue curve lies above the demand curve.

B) the demand and marginal revenue curves coincide.

C) the demand curve intersects the horizontal axis where total revenue is at a maximum.

D) marginal revenue will become zero at that output where total revenue is at a maximum.

Answer: D

Type: A Topic: 3 E: 443-444 MI: 199-200...