微观经济学第十四章习题.docx

1、微观经济学第十四章习题Microeconomics - Testbank 1 (Hubbard/OBrien)Chapter 14 Monopoly and Antitrust Policy1)A monopoly is a seller of a product:A)with many substitutes.B)without a close substitute.C)with a perfectly inelastic demand.D)w ithout a a well -defined demand curve. Answer: B Diff: 1 Page Ref: 4442)A

2、monopolist is a seller who:A)has to consider the actions of other sellers.B)is small relative to the market.C)can ignore the threat of competition from other firms.D)all of the above.Answer: CDiff: 2 Page Ref: 4453)The demand curve for the monopolists product is:A)the market demand for the product.B

3、)more elastic than the market demand for the product.C)more inelastic than the market demand for the product.D)u ndefined.Answer: ADiff: 2 Page Ref: 4514)To sell more output, the monopolist:A)only has to produce more.B)has to lower the products price.C)must lower production costs.D)has to advertise

4、the product extensively. Answer: BDiff: 2 Page Ref: 4525)To keep a monopoly a firm must have:A)a perfectly inelastic demand.B)an insurmountable barrier to entry.C)m arginal revenue equal to demand.D)all of the above.Answer: BDiff: 2 Page Ref: 4456)A local electricity -generating company has a monopo

5、ly that is protected by a barrier to entry that takes the form of:A)control of a key raw material.B)n etwork externalities.C)economies of scale.D)none of the above. Answer: C Diff: 2 Page Ref: 4507)A patent or copyright is a barrier to entry based on:A)ownership of a key necessary raw material.B)lar

6、ge economies of scale as output increases.C)government action to protect one producer.D)w idespread network externalities in supply of the good or service. Answer: CDiff: 2 Page Ref: 4458)A public franchise is:A)ownership of a key necessary raw material.B)government ownership and operation of a lega

7、l monopoly.C)government designation that a private firm is the only legal producer of a good or service.D)an unregulated monopoly necessary for the public good. Answer: CDiff: 2 Page Ref: 4459)A public enterprise is:A)any private business that is not -for -profit.B)government ownership and operation

8、 of a legal monopoly.C)government designation that a private firm is the only legal producer of a good or service.D)an unregulated monopoly necessary for the public good. Answer: BDiff: 2 Page Ref: 44510)A United States government patent lasts:A)forever.B)50 years.C)20 years.D)7 years. Answer: C Dif

9、f: 2 Page Ref: 44611)Governments grant patents to encourage:A)research and development on new products.B)competition.C)low prices.D)all of the above. Answer: A Diff: 2 Page Ref: 44612)Governments grant patents to:A)compensate firms for research and development costs.B)encourage competition.C)encoura

10、ge low prices.D)all of the above. Answer: A Diff: 2 Page Ref: 44613)Patent protection is of vital importance for:A)furniture producers.B)software firms.C)p harmaceutical firms.D)auto makers.Answer: CDiff: 2 Page Ref: 44614)O wnership of a key resource is important in:A)aluminum production.B)n ickel

11、production.C)p rofession sports.D)all of these.Answer: DDiff: 1 Page Ref: 44715)A network externality is:A)h aving a network of suppliers and buyers for a good or service.B)h aving lobbyists to advocate a public franchise.C)a good or service whose usefulness increases with the number of people using

12、 it.D)a good or service that requires connection to a network for it to be useful.Answer: CDiff: 2 Page Ref: 44816)A virtuous cycle is:A)using lobbyists to petition Congress to grant a public franchise.B)using monopoly profits to create new products for additional monopoly profits.C)attracting enoug

13、h buyers initially to increase a products usefulness to attract more buyers.D)attracting enough sales to gain economies of scale. Answer: CDiff: 2 Page Ref: 44917)For a natural monopoly to exist:A)a firm must continually buy up rivals.B)a firms long run average cost curve must exhibit diseconomies o

14、f scale.C)a firms long run average cost curve must exhibit economies of scale.D)a firm must have a patent.Answer: CDiff: 2 Page Ref: 44918)A natural monopoly is characterized by:A)large marginal costs relative to fixed costs.B)small fixed costs relative to variable costs.C)large fixed costs relative

15、 to variable costs.D)fixed costs that are equal to variable costs.Answer: CDiff: 2 Page Ref: 45019)A monopolists profit maximizing price and output is:A)where average total cost are smallest.B)where total costs are the smallest relative to price.C)where marginal revenue equals marginal cost and char

16、ging the price on market demand for that output.D)where price is as high as possible.Answer: CDiff: 3 Page Ref: 45320)A monopoly:A)always earns a profit.B)is a price taker.C)must lower price to sell more of its product.D)all of the above.Answer: CDiff: 2 Page Ref: 45221)If a monopolists price is $50

17、 a unit and its marginal cost is $25, then:A)to maximize profit the firm should increase output.B)to maximize profit the firm should decrease output.C)to maximize profit the firm should continue to produce the output it is producing.D)not enough information is given to say say what the firm should d

18、o to maximize profit. Answer: DDiff: 3 Page Ref: 45322)If a monopolists marginal revenue is $35 a unit and its marginal cost is $25, then:A)to maximize profit the firm should increase output.B)to maximize profit the firm should decrease output.C)to maximize profit the firm should continue to produce

19、 the output it is producing.D)not enough information is given to say say what the firm should do to maximize profit. Answer: ADiff: 2 Page Ref: 45323)If a monopolists marginal revenue is $15 a unit and its marginal cost is $25, then:A)to maximize profit the firm should increase output.B)to maximize

20、profit the firm should decrease output.C)to maximize profit the firm should continue to produce the output it is producing.D)not enough information is given to say say what the firm should do to maximize profit. Answer: BDiff: 2 Page Ref: 45324)If a monopolists marginal revenue is $25 a unit and its

21、 marginal cost is $25, then:A)to maximize profit the firm should increase output.B)to maximize profit the firm should decrease output.C)to maximize profit the firm should continue to produce the output it is producing.D)not enough information is given to say say what the firm should do to maximize p

22、rofit.Answer: CDiff: 2 Page Ref: 45325)If a monopolists price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then:A)the firms average profit is $50.B)the firms average profit is $43.C)the firms average profit is $7.D)Not enough information is given to

23、 answer the question.Answer: CDiff: 2 Page Ref: 45426)If a monopolists price is $50 at 63 units of output and marginal revenue equals marginal cost and average total cost equals $43, then the firms total profit is:A)$3,150.B)$2,709.C)$441.D)$7.Answer: CDiff: 3 Page Ref: 454Refer to Figure 14.1 for t

24、he questi ons above.27)To profit maximize the firm in figure 14.1 will produce:A)Q1.B)Q2.C)Q3.D)Q4.An swer: BDiff: 3 Page Ref: 45328)The profit maximize price for the firm in figure 14.1 is:A)P1.B)P2.C)P3.D)P4.An swer: CDiff: 3 Page Ref: 45329)If average total costs are ATC1, the firm in figure 14.1

25、 will:A)suffer a loss.B)break eve n.C)m ake a profit.D)face competiti on.An swer: CDiff: 3 Page Ref: 45330)If average total costs are ATC2, the firm in figure 14.1 will:A)suffer a loss.B)break even.C)make a profit.D)face competition.Answer: BDiff: 3 Page Ref: 45331)If average total costs are ATC3, t

26、he firm in figure 14.1 will:A)suffer a loss.B)break even.C)make a profit.D)face competition.Answer: ADiff: 3 Page Ref: 45332)In figure 14.1, the difference between the monopoly output and the competitive output is:A)Q 2- Q1.B)Q 3- Q1.C)Q 3- Q2.D)Q 4- Q2.Answer: CDiff: 3 Page Ref: 45633)Economic effi

27、ciency in a market occurs when:A)consumer surplus is maximized.B)p roducer surplus is maximized.C)consumer surplus plus producer surplus is maximized.D)price is as low as possible.Answer: CDiff: 2 Page Ref: 45734)A profit maximizing monopolists price is:A)equal to what the price would be if the mono

28、noplists industry were competitive.B)less than what the price would be if the mononoplists industry were competitive.C)greater than what the price would be if the mononoplists industry were competitive.D)not consistently related to price if the market were competitive.Answer: CDiff: 2 Page Ref: 4563

29、5)O utput under a monopoly is:A)equal to what output would be if the industry were competitive.B)less than what output would be if the industry were competitive.C)greater than what output would be if the industry were competitive.D)has no consistent relationship to what output would be if the indust

30、ry were competitive. Answer: BDiff: 2 Page Ref: 45636)C ompared to perfect competition, under monopoly:A)consumer surplus is unchanged because price and output is the same.B)consumer surplus is decreased because price is higher and output is lower.C)consumer surplus is increased because price is hig

31、her and output is the same.D)consumer surplus is eliminated.Answer: BDiff: 2 Page Ref: 45737)C ompared to perfect competition, a monopoly:A)i ncreases consumer surplus.B)causes a deadweight welfare loss.C)i ncreases total surplus.D)all of the above.Answer: BDiff: 2 Page Ref: 45738)C ompared to perfect competition, with monopoly:A)consumer surplus is reduced.B)output is reduced.C)total surplus is reduced.D)all of the above.Answer: DDiff: 2 Page Ref: 45739)Relative to a perfe