Monopoly

A. One seller of the product
B. low barriers to entry
C. close substitute products
D. perfect information

A. there is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. the monopolist is financially powerful.
D. antitrust laws eliminate competitors for a specified number of years.
E. of all of the things described in these answers

A. Perfect price discrimination generates a deadweight loss
B. Price discrimination can raise economic welfare.
C. price discrimination requires that seller be able to separate buyers according to their willingness to pay.
D. Price discrimination increases a monopolist’s profits.
E. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.

A. Increase competition in an industry by preventing mergers and breaking up large firms.
B. regulate the prices charged by a monopoly
C. increase merger activity to help generate synergies that reduce costs and raise efficiency.
D. create public ownership of natural monopolies
E. all of these answers

A. does not exist
B. is the marginal cost curve above average variable cost?
C. is the marginal cost curve above average total cost
D. is the upward-sloping portion of the average total cost curve
E. The upward-sloping portion of the average variable cost

A. underproduction of the good
B. the monopoly’s profits
C. the monopoly’s losses
D. overproduction of the good

A. Thomson has a legally protected exclusive right to produce this textbook
B. Thomson owns a key resource in the production of textbooks.
C. Thomson is a natural monopoly,
D. Thomson is a very large company

A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost

A. below the price because the price effect outweighs the output effect
B. above the price because the output effect outweighs the price effect
C. above the price because the price effect outweighs the output effect
D. below the price because the output effect outweighs the price effect

A. A single firm is very large
B. The government gives a single firm the exclusive right to produce some good
C. The costs of production make a single producer more efficient than a large number of productions
D. A key resource is owned by a single firm