1. Patents A. give firms the exclusive right to develop or regulate a product for at leastern 17 years. B. are offered to encourage study and also innovation. C. are a obstacle to entry. D. all of the above

2. A pucount monopolistic industry A. is characterized by significant entry obstacles. B. is identified by a firm that is a price searcher. C. produces a product or business for which tbelow are no cshed substitutes. D. all of the above

3. A herbal monopoly occurs as soon as A. tright here are substantial economic climates of range. B. a firm owns or controls some resource that is essential to production. C. long-run average costs increase continuously as output is raised. D. there are significant diseconomic climates of scale.

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4. What do economic climates of scale, predatory behaviour, and also patents all have actually in common? A. They must all be present before price discrimicountry deserve to be practised. B. They are all barriers to entry. C. They all help describe why a monopolist"s demand and also marginal revenue curves coincide. D. They all aid describe why the long-run average price curve is U-shaped.

5. The typical monopolistic firm"s demand curve A. is downward sloping. B. is perfectly elastic. C. coincides with its marginal revenue curve. D. is unitary inelastic.

6. The typical monopolistic firm"s marginal revenue curve A. is a horizontal curve. B. equals the monopolists demand curve. C. is over the monopolist"s demand also curve. D. is listed below the monopolist"s demand also curve.

7. A firm is being productively effective if it produces at a level wbelow A. price amounts to marginal cost. B. marginal revenue amounts to marginal price. C. average complete cost is lessened. D. it earns a normal profit.

8. Given the same unit price data, a monopolistic producer will certainly charge A. the exact same price and also produce the exact same output as a competitive firm. B. a greater price and also produce a larger output than a competitive firm. C. a greater price and develop a smaller sized output than a competitive firm. D. a reduced price and also create a smaller output than a competitive firm.

9. Pucount competitive firms and also pure monopolists are similar in that A. the demand also curves of both are perfectly elastic. B. substantial enattempt obstacles are common to both. C. both are price takers. D. both maximize revenues wbelow MR = MC.

10. A perfectly discriminating pure monopolist will charge each buyer A. different prices in order to compensate for distinctions in the characteristics of the product. B. the same price if per unit price is constant for each unit of the product. C. the price that equates to the buyer"s average cost. D. the maximum price each buyer would certainly be willing to pay for each unit.

11. If a monopolist engeras in perfect price discrimination, it will certainly A. realize a bigger revenue and a bigger profit. B. charge a higher price wright here individual demand also is elastic, and also a reduced price wright here individual demand also is inelastic. C. develop a smaller output than when it did not discriminate. D. every one of the above

12. If a regulatory commission wants to administer a natural monopoly with a "normal rerotate," it need to create a price that is equal to A. minimum average resolved expense. B. average total expense. C. marginal price. D. marginal revenue.

13. The trouble through applying "marginal expense pricing" to a natural monopoly firm is that A. the firm will certainly still make excess revenues. B. the firm will certainly charge a price greater than an unregulated monopoly. C. the firm will be allocatively inefficient. D. the firm will certainly ultimately go bankrupt.

Figure 1: This number describes an eye clinic (firm) that has actually a syndicate in giving a brand-new type of eye exam. The quantity levels in the graph listed below describes the number of eye exams that the clinic can administer per time period (per 5 minute period). The price, revenue, and also prices per exam (per unit) are additionally shown in the graph below.

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14. Refer to Figure 1, above, to answer the complying with. Under the case of "single price monopoly" the profit maximizing quantity level would certainly be A. 2 exams per time period. B. 4 exams per time duration. C. 6 exams per time period. D. 8 exams per time duration.

15. Refer to Figure 1, over, to answer the following. Under the situation of "single price monopoly," the profit maximizing price would certainly be A. $65 per exam. B. $60 per exam. C. $55 per exam. D. $50 per exam.

16. Refer to Figure 1, over, to answer the adhering to. Under the situation of "single price monopoly" the total dollar amount of maximum profit would be approximately (per time period) A. $40. B. $260. C. $20. D. $50.

17. Refer to Figure 1, over, to answer the adhering to. Under the situation of "marginal price pricing regulation," the clinic would certainly administer what amount of exams per time period? A. 2 exams per time duration. B. 4 exams per time period. C. 6 exams per time period. D. 8 exams per time duration.

18. Refer to Figure 1, above, to answer the adhering to. Under the situation of "marginal expense pricing regulation," the complete dollar amount of financial profit would be roughly (per time period) A. $60. B. $-60. C. $65. D. $zero financial profit.

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19. Refer to Figure 1, over, to answer the following. Under the case of "average price pricing regulation," the clinic would charge what price per exam? A. $45 B. $50 C. $55 D. $60

20. Refer to Figure 1, over, to answer the complying with. Under the instance of "perfect price discrimicountry," the profit maximizing amount would certainly be A. 2 exams per time period. B. 4 exams per time duration. C. 6 exams per time period. D. 8 exams per time period.