Donna owns the only dog grooming salon on Lonely Island. The figure shows the dog grooming market. Donna is a single-price monopoly that operates on the _______ part of the _______ curve.

inelastic; demand
elastic; demand
elastic; supply
inelastic; supply

Suppose that a monopoly is currently producing the quantity at which marginal revenue exceeds marginal cost. The monopoly can increase its profit by _________________________.

raising its price and decreasing its output
lowering its price and increasing its output
lowering its price and decreasing its output
shutting down

Donna owns the only dog grooming salon on Lonely Island. The figure shows the dog grooming market. Donna is a single-price monopoly that maximizes profit by charging _______ per grooming. Her profit will be _______________.

£20; £0
£17; £160
£10; £50
£30; £80

The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, then the consumer surplus is ________.

£10
£20
£0
£40

The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, its monopoly's gain is ___________ and it creates a deadweight loss of ____________.

£60; £10
£10; £5
£50; £0
£30; £3

Monopoly imposes costs that equal _____________.

the deadweight loss created plus the cost of the resources used in rent seeking
the monopoly's gain
the producer surplus plus the monopoly's gain
the quantity produced multiplied by the price charged

Donna owns the only dog grooming salon on Lonely Island. If Donna can price discriminate between dog owners who are seniors and those who are not, her economic profit will be _______ per day.

£0
greater than £80
£50
less than £80

A monopoly can price discriminates between two groups if the two groups have __________.

different marginal costs
the same willingness to pay
different price elasticities of demand for the product
large consumer surpluses

A perfect price discriminating monopoly produces the same output as a _______________.

single-price monopoly but charges higher prices
perfectly competitive industry but charges lower prices
perfectly competitive firm
perfectly competitive industry

A ________________monopoly is as efficient as a _____________________ if both have the same costs.

perfect price discriminating; perfectly competitive industry
single-price; perfectly competitive firm
perfect price discriminating; single-price monopoly
single-price; perfectly competitive industry

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