微观经济学第十四章习题.docx
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微观经济学第十四章习题
Microeconomics-Testbank1(Hubbard/O'Brien)
Chapter14MonopolyandAntitrustPolicy
1)Amonopolyisasellerofaproduct:
A)withmanysubstitutes.
B)withoutaclosesubstitute.
C)withaperfectlyinelasticdemand.
D)withoutaawell-defineddemandcurve.Answer:
BDiff:
1PageRef:
444
2)Amonopolistisasellerwho:
A)hastoconsidertheactionsofothersellers.
B)issmallrelativetothemarket.
C)canignorethethreatofcompetitionfromotherfirms.
D)alloftheabove.
Answer:
C
Diff:
2PageRef:
445
3)Thedemandcurveforthemonopolist'sproductis:
A)themarketdemandfortheproduct.
B)moreelasticthanthemarketdemandfortheproduct.
C)moreinelasticthanthemarketdemandfortheproduct.
D)undefined.
Answer:
A
Diff:
2PageRef:
451
4)Tosellmoreoutput,themonopolist:
A)onlyhastoproducemore.
B)hastolowertheproduct'sprice.
C)mustlowerproductioncosts.
D)hastoadvertisetheproductextensively.Answer:
B
Diff:
2PageRef:
452
5)Tokeepamonopolyafirmmusthave:
A)aperfectlyinelasticdemand.
B)aninsurmountablebarriertoentry.
C)marginalrevenueequaltodemand.
D)alloftheabove.
Answer:
B
Diff:
2PageRef:
445
6)Alocalelectricity-generatingcompanyhasamonopolythatisprotectedbyabarriertoentrythattakestheformof:
A)controlofakeyrawmaterial.
B)networkexternalities.
C)economiesofscale.
D)noneoftheabove.Answer:
CDiff:
2PageRef:
450
7)Apatentorcopyrightisabarriertoentrybasedon:
A)ownershipofakeynecessaryrawmaterial.
B)largeeconomiesofscaleasoutputincreases.
C)governmentactiontoprotectoneproducer.
D)widespreadnetworkexternalitiesinsupplyofthegoodorservice.Answer:
C
Diff:
2PageRef:
445
8)Apublicfranchiseis:
A)ownershipofakeynecessaryrawmaterial.
B)governmentownershipandoperationofalegalmonopoly.
C)governmentdesignationthataprivatefirmistheonlylegalproducerofagoodorservice.
D)anunregulatedmonopolynecessaryforthepublicgood.Answer:
C
Diff:
2PageRef:
445
9)Apublicenterpriseis:
A)anyprivatebusinessthatisnot-for-profit.
B)governmentownershipandoperationofalegalmonopoly.
C)governmentdesignationthataprivatefirmistheonlylegalproducerofagoodorservice.
D)anunregulatedmonopolynecessaryforthepublicgood.Answer:
B
Diff:
2PageRef:
445
10)AUnitedStatesgovernmentpatentlasts:
A)forever.
B)50years.
C)20years.
D)7years.Answer:
CDiff:
2PageRef:
446
11)Governmentsgrantpatentstoencourage:
A)researchanddevelopmentonnewproducts.
B)competition.
C)lowprices.
D)alloftheabove.Answer:
ADiff:
2PageRef:
446
12)Governmentsgrantpatentsto:
A)compensatefirmsforresearchanddevelopmentcosts.
B)encouragecompetition.
C)encouragelowprices.
D)alloftheabove.Answer:
ADiff:
2PageRef:
446
13)Patentprotectionisofvitalimportancefor:
A)furnitureproducers.
B)softwarefirms.
C)pharmaceuticalfirms.
D)automakers.
Answer:
C
Diff:
2PageRef:
446
14)Ownershipofakeyresourceisimportantin:
A)aluminumproduction.
B)nickelproduction.
C)professionsports.
D)allofthese.
Answer:
D
Diff:
1PageRef:
447
15)Anetworkexternalityis:
A)havinganetworkofsuppliersandbuyersforagoodorservice.
B)havinglobbyiststoadvocateapublicfranchise.
C)agoodorservicewhoseusefulnessincreaseswiththenumberofpeopleusingit.
D)agoodorservicethatrequiresconnectiontoanetworkforittobeuseful.
Answer:
C
Diff:
2PageRef:
448
16)Avirtuouscycleis:
A)usinglobbyiststopetitionCongresstograntapublicfranchise.
B)usingmonopolyprofitstocreatenewproductsforadditionalmonopolyprofits.
C)attractingenoughbuyersinitiallytoincreaseaproduct'susefulnesstoattractmorebuyers.
D)attractingenoughsalestogaineconomiesofscale.Answer:
C
Diff:
2PageRef:
449
17)Foranaturalmonopolytoexist:
A)afirmmustcontinuallybuyuprivals.
B)afirm'slongrunaveragecostcurvemustexhibitdiseconomiesofscale.
C)afirm'slongrunaveragecostcurvemustexhibiteconomiesofscale.
D)afirmmusthaveapatent.
Answer:
C
Diff:
2PageRef:
449
18)Anaturalmonopolyischaracterizedby:
A)largemarginalcostsrelativetofixedcosts.
B)smallfixedcostsrelativetovariablecosts.
C)largefixedcostsrelativetovariablecosts.
D)fixedcoststhatareequaltovariablecosts.
Answer:
C
Diff:
2PageRef:
450
19)Amonopolist'sprofitmaximizingpriceandoutputis:
A)whereaveragetotalcostaresmallest.
B)wheretotalcostsarethesmallestrelativetoprice.
C)wheremarginalrevenueequalsmarginalcostandchargingthepriceonmarketdemandforthatoutput.
D)wherepriceisashighaspossible.
Answer:
C
Diff:
3PageRef:
453
20)Amonopoly:
A)alwaysearnsaprofit.
B)isapricetaker.
C)mustlowerpricetosellmoreofitsproduct.
D)alloftheabove.
Answer:
C
Diff:
2PageRef:
452
21)Ifamonopolist'spriceis$50aunitanditsmarginalcostis$25,then:
A)tomaximizeprofitthefirmshouldincreaseoutput.
B)tomaximizeprofitthefirmshoulddecreaseoutput.
C)tomaximizeprofitthefirmshouldcontinuetoproducetheoutputitisproducing.
D)notenoughinformationisgiventosaysaywhatthefirmshoulddotomaximizeprofit.Answer:
D
Diff:
3PageRef:
453
22)Ifamonopolist'smarginalrevenueis$35aunitanditsmarginalcostis$25,then:
A)tomaximizeprofitthefirmshouldincreaseoutput.
B)tomaximizeprofitthefirmshoulddecreaseoutput.
C)tomaximizeprofitthefirmshouldcontinuetoproducetheoutputitisproducing.
D)notenoughinformationisgiventosaysaywhatthefirmshoulddotomaximizeprofit.Answer:
A
Diff:
2PageRef:
453
23)Ifamonopolist'smarginalrevenueis$15aunitanditsmarginalcostis$25,then:
A)tomaximizeprofitthefirmshouldincreaseoutput.
B)tomaximizeprofitthefirmshoulddecreaseoutput.
C)tomaximizeprofitthefirmshouldcontinuetoproducetheoutputitisproducing.
D)notenoughinformationisgiventosaysaywhatthefirmshoulddotomaximizeprofit.Answer:
B
Diff:
2PageRef:
453
24)Ifamonopolist'smarginalrevenueis$25aunitanditsmarginalcostis$25,then:
A)tomaximizeprofitthefirmshouldincreaseoutput.
B)tomaximizeprofitthefirmshoulddecreaseoutput.
C)tomaximizeprofitthefirmshouldcontinuetoproducetheoutputitisproducing.
D)notenoughinformationisgiventosaysaywhatthefirmshoulddotomaximizeprofit.
Answer:
C
Diff:
2PageRef:
453
25)Ifamonopolist'spriceis$50attheoutputwheremarginalrevenueequalsmarginalcostandaveragetotalcostis$43,then:
A)thefirmsaverageprofitis$50.
B)thefirmsaverageprofitis$43.
C)thefirmsaverageprofitis$7.
D)Notenoughinformationisgiventoanswerthequestion.
Answer:
C
Diff:
2PageRef:
454
26)Ifamonopolist'spriceis$50at63unitsofoutputandmarginalrevenueequalsmarginalcostandaveragetotalcostequals$43,thenthefirm'stotalprofitis:
A)$3,150.
B)$2,709.
C)$441.
D)$7.
Answer:
C
Diff:
3PageRef:
454
RefertoFigure14.1forthequestionsabove.
27)Toprofitmaximizethefirminfigure14.1willproduce:
A)Q1.
B)Q2.
C)Q3.
D)Q4.
Answer:
B
Diff:
3PageRef:
453
28)Theprofitmaximizepriceforthefirminfigure14.1is:
A)P1.
B)P2.
C)P3.
D)P4.
Answer:
C
Diff:
3PageRef:
453
29)IfaveragetotalcostsareATC1,thefirminfigure14.1will:
A)sufferaloss.
B)breakeven.
C)makeaprofit.
D)facecompetition.
Answer:
C
Diff:
3PageRef:
453
30)IfaveragetotalcostsareATC2,thefirminfigure14.1will:
A)sufferaloss.
B)breakeven.
C)makeaprofit.
D)facecompetition.
Answer:
B
Diff:
3PageRef:
453
31)IfaveragetotalcostsareATC3,thefirminfigure14.1will:
A)sufferaloss.
B)breakeven.
C)makeaprofit.
D)facecompetition.
Answer:
A
Diff:
3PageRef:
453
32)Infigure14.1,thedifferencebetweenthemonopolyoutputandthecompetitiveoutputis:
A)Q2-Q1.
B)Q3-Q1.
C)Q3-Q2.
D)Q4-Q2.
Answer:
C
Diff:
3PageRef:
456
33)Economicefficiencyinamarketoccurswhen:
A)consumersurplusismaximized.
B)producersurplusismaximized.
C)consumersurplusplusproducersurplusismaximized.
D)priceisaslowaspossible.
Answer:
C
Diff:
2PageRef:
457
34)Aprofitmaximizingmonopolist'spriceis:
A)equaltowhatthepricewouldbeifthemononoplist'sindustrywerecompetitive.
B)lessthanwhatthepricewouldbeifthemononoplist'sindustrywerecompetitive.
C)greaterthanwhatthepricewouldbeifthemononoplist'sindustrywerecompetitive.
D)notconsistentlyrelatedtopriceifthemarketwerecompetitive.
Answer:
C
Diff:
2PageRef:
456
35)Outputunderamonopolyis:
A)equaltowhatoutputwouldbeiftheindustrywerecompetitive.
B)lessthanwhatoutputwouldbeiftheindustrywerecompetitive.
C)greaterthanwhatoutputwouldbeiftheindustrywerecompetitive.
D)hasnoconsistentrelationshiptowhatoutputwouldbeiftheindustrywerecompetitive.Answer:
B
Diff:
2PageRef:
456
36)Comparedtoperfectcompetition,undermonopoly:
A)consumersurplusisunchangedbecausepriceandoutputisthesame.
B)consumersurplusisdecreasedbecausepriceishigherandoutputislower.
C)consumersurplusisincreasedbecausepriceishigherandoutputisthesame.
D)consumersurplusiseliminated.
Answer:
B
Diff:
2PageRef:
457
37)Comparedtoperfectcompetition,amonopoly:
A)increasesconsumersurplus.
B)causesadeadweightwelfareloss.
C)increasestotalsurplus.
D)alloftheabove.
Answer:
B
Diff:
2PageRef:
457
38)Comparedtoperfectcompetition,withmonopoly:
A)consumersurplusisreduced.
B)outputisreduced.
C)totalsurplusisreduced.
D)alloftheabove.
Answer:
D
Diff:
2PageRef:
457
39)Relativetoaperfe