Foundations of economics 6th by parkin ch16 clicker questions

Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Monopoly 16 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 16.1 Checkpoint 16.3 Checkpoint 16.5 Question Question 11 Question Question 55 Question Question 99 Question Question 22 Question Question 66 Question Question 10 10 Checkpoint 16.2 Checkpoint 16.4 Question Question 33 Question Question 77 Question Question 44 Question Question 88 © 2013 Pearson CHECKPOINT 16.1 Question A natural monopoly is one that arises from _, A B C D E patent law copyright law a firm buying up all of a natural resource economies of scale ownership of a natural resource © 2013 Pearson CHECKPOINT 16.1 Question A local pizza producer charges one price for a single pizza and almost gives away a second one This is an example of _ A B C D E monopoly a barrier to entry behavior that is not profit-maximizing price discrimination rent seeking © 2013 Pearson CHECKPOINT 16.2 Question A single-price monopoly can sell unit for $9.00, but to sell units, the price must be cut to $8.50 per unit The marginal revenue from selling the second unit is A $17.50 B $17.00 C $8.50 D $8.00 E $9.00 © 2013 Pearson CHECKPOINT 16.2 Question To maximize profit, a single-price monopoly produces the quantity at which A marginal revenue exceeds marginal cost by the largest possible amount B marginal revenue is equal to marginal cost C average total cost is at its minimum D the marginal cost equal the market price E marginal revenue is zero © 2013 Pearson CHECKPOINT 16.3 Question Comparing single-price monopoly to perfect competition, with monopoly A B C D E the consumer surplus is larger the total surplus is larger there is no consumer surplus the total surplus is smaller the consumer surplus is smaller, but the total surplus is the same © 2013 Pearson CHECKPOINT 16.3 Question In equilibrium, rent seeking eliminates the A B C D E deadweight loss economic profit consumer surplus demand for the product opportunity to price discriminate © 2013 Pearson CHECKPOINT 16.4 Question When a monopoly price discriminates, it A increases the amount of consumer surplus B decreases its economic profit C converts consumer surplus into economic profit D converts economic profit into consumer surplus E has no effect on the deadweight loss © 2013 Pearson CHECKPOINT 16.4 Question With perfect price discrimination, the quantity of output produced by the monopoly the quantity produced by a perfectly competitive industry A B C D E is greater than is less than is equal to is not comparable to might be greater than or equal to © 2013 Pearson CHECKPOINT 16.5 Question When regulators require a natural monopoly to set a price that is equal to marginal cost, the firm produces _ quantity and A B C D E the efficient; makes zero economic profit an inefficient; makes a positive economic profit the efficient; incurs an economic loss an inefficient; incurs an economic loss an inefficient; makes zero economic profit © 2013 Pearson CHECKPOINT 16.5 Question 10 If the natural monopoly illustrated in the figure was regulated using an average cost pricing rule, the price would be A B C D E $100 between $100.01 and $200.00 between $200.01 and $300.00 between $300.01 and $400.00 more than $400.01 © 2013 Pearson ... arises from _, A B C D E patent law copyright law a firm buying up all of a natural resource economies of scale ownership of a natural resource © 2013 Pearson CHECKPOINT 16.1 Question A local... the amount of consumer surplus B decreases its economic profit C converts consumer surplus into economic profit D converts economic profit into consumer surplus E has no effect on the deadweight... CHECKPOINT 16.4 Question With perfect price discrimination, the quantity of output produced by the monopoly the quantity produced by a perfectly competitive industry A B C D E is greater than is less