EU12L4
1
The table gives the demand schedule for water bottled by Wanda's Healthy Waters. If Wanda's is a monopoly, what is the range of prices at which it is willing to sell water?
any price over £5 a bottle
£10 a bottle
£5 a bottle
any price below £5 a bottle
2
If the wage rate that a monopoly has to pay for labour services increases, then its marginal cost curve ______________________.
and the demand curve shift rightward
and the marginal revenue and average total cost curves shift rightward
shifts leftward and the marginal revenue curve does not change
shifts leftward and so does the marginal revenue curve
3
The table gives the demand schedule for water bottled by Wanda's Healthy Waters. If the marginal cost is a constant £4 a bottle, Wanda's will produce _________ a day and charge ____________ a bottle.
1 bottle; £9
4 bottles; £6
3 bottles; £7
5 bottles; £5
4
The table gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant £4 a bottle. Wanda's makes an economic profit of __________a day.
£21
£0
£12
£9
5
Roxie's Movie Theatre is the only one in town. The table gives the demand schedule for movies. If Roxie's is a single-price monopoly and the marginal cost of a movie is £6, Roxie's will charge _______ a movie and will sell ______movie tickets a week.
£9; 300
£15; 100
£6; 400
£12; 200
6
Roxie's Movie Theatre has a monopoly and discovers that at £12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table reveals the results of the survey. Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is £6. Roxie's charges _________ on weekdays and _____ on weekends.
£9; £12
£9; £15
£6; £18
£6; £15
7
A monopoly might be more beneficial than a perfectly competitive industry if it _________________.
can produce more
has a bigger incentive to innovate
never price discriminates
spends more on advertising
8
A natural monopoly occurs when_______________.
average total cost decreases as output increases
marginal cost increases as output increases
average total cost increases as the quantity of inputs increases
marginal cost decreases as the quantity of inputs increases
9
A single-price monopoly is making a economic profit when the demand for the service that a monopoly supplies decreases. Its costs remain the same, the monopoly will ___________ its output, _________ its price and _________ its profit.
decrease; lower; decrease
decrease; not change; decrease
not change; raise; decrease
not change; not change; not change
10
A single-price monopoly switches to a new technology that reduces its costs by 10 percent. The monopoly will _________ the quantity it produces and, __________the price it charges.
increase; lower
not change; not change
increase; not change
not change; raise
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