麦圭根《管理经济学》英文版题库Chapter11PriceandOutputDete.docx

1、麦圭根管理经济学英文版题库Chapter11PriceandOutputDeteMultiple Choice1.Unique Creations has a monopoly position in magnometers.If the marginal cost for a magnometer is $50 and the price elasticity for magnometers is -4, what is the optimal monopoly price?Hint:P (1 +1/E) = MC.a.$37.50b.$41.25c.$66.67d.$75.00e.$82.

2、50ANSWER:cPOINTS:1DIFFICULTY:ChallengingQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPRPOG: AnalysisTOPICS:The Optimal Markup, Contribution Margin, and Contribution Margin PercentageKEYWORDS:BLOOMS: AnalysisDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45

3、AM2.Lands End estimates a demand curve for turtleneck sweaters to be:Log Q = .41 + 2.3 Log Y - 3 Log Pwhere Q is quantity, P is price, and Y is a measure on national income.If the marginal cost of imported turtleneck sweaters is $9.00.(HINT:P (1 +1/E) = MC).The optimal monopoly price would be:a.P =

4、$13.50b.P = $26.50c.P = $27.50d.P = $34.50e.P = $56.22ANSWER:aPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPRPOG: AnalysisTOPICS:Price and Output Determination for a MonopolistKEYWORDS:BLOOMS: AnalysisDATECREATED:6/21/2016 8:45 AMDATEMOD

5、IFIED:6/21/2016 8:45 AM3.Declining cost industriesa.have upward rising AC curves.b.have upward rising demand curves.c.have -shaped total costs.d.have diseconomies of scale.e.have marginal cost curves below their average cost curve.ANSWER:ePOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVAR

6、IABLES:FalseNATIONALSTANDARDS:United States - BPROG: Reflective Thinking - BPROG: AnalysisTOPICS:Sources of Market Power for a MonopolistKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM4.A monopolist seller of Irish ceramics faces the following demand functio

7、n for its product: P = 62 - 3Q.The fixed cost is $10 and the variable cost per unit is $2.What is the maximizing QUANTITY for this monopoly?Hint:MR is twice as steep as the inverse demand curve:MR = 62 6 Q. (Pick closest answer)a.Q = 10b.Q = 15c.Q = 22d.Q = 37e.Q = 41ANSWER:aPOINTS:1DIFFICULTY:Chall

8、engingQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPRPOG: AnalysisTOPICS:Price and Output Determination for a MonopolistKEYWORDS:BLOOMS: AnalysisDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM5.Globo Public Supply has $1,000,000 in assets.Its demand cu

9、rve is: P = 206 - .20Q and its total cost function is: TC = 20,000 + 6Q where TC excludes the cost of capital.If Globo Public Supply is UNREGULATED, find Globos optimal price.a.$206b.$106c.$56d.$6e.$3ANSWER:bPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:U

10、nited States - BPRPOG: AnalysisTOPICS:Price and Output Determination for a MonopolistKEYWORDS:BLOOMS: AnalysisDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM6.A monopolist faces the following demand curve: P = 12 - .3Q with marginal costs of $3.What is the monopolistic PRICE?a.P = $5.50b

11、.P = $6.50c.P = $7.50d.P = $8.50e.P = $9.50ANSWER:cPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPRPOG: AnalysisTOPICS:Price and Output Determination for a MonopolistKEYWORDS:BLOOMS: AnalysisDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/

12、2016 9:15 AM7.In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale.If price were set equal to marginal cost, then:a.price would equal average cost.b.price would exceed average cost.c

13、.price would be below average cost.d.price would be at the profit maximizing level for natural monopolye.all of the aboveANSWER:cPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPRPOG: AnalysisTOPICS:Monopoly DefinedKEYWORDS:BLOOMS: Comprehe

14、nsionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM8.The profit-maximizing monopolist, faced with a negative-sloping demand curve, will always produce:a.at an output greater than the output where average costs are minimizedb.at an output short of that output where average costs are mini

15、mizedc.at an output equal to industry output under pure competitiond.a and ce.none of the aboveANSWER:bPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: Reflective Thinking - BPROG: AnalysisTOPICS:Price and Output Determination for a Mo

16、nopolistKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM9.In the case of pure monopoly:a.one firm is the sole producer of a good or service which has no close substitutesb.the firms profit is maximized at the price and output combination where marginal cost e

17、quals marginal revenuec.the demand curve is always elasticd.a and b onlye.a, b, and cANSWER:dPOINTS:1DIFFICULTY:EasyQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:Monopoly DefinedKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMOD

18、IFIED:6/21/2016 8:45 AM10.A monopoly will always produce less than a purely competitive industry, ceteris paribus.a.trueb.falseANSWER:bPOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:The Optimal Markup, Contribution Mar

19、gin, and Contribution Margin PercentageKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM11.The demand curve facing the firm in _ is the same as the industry demand curve.a.pure competitionb.monopolistic competitionc.oligopolyd.pure monopolye.none of the aboveA

20、NSWER:dPOINTS:1DIFFICULTY:EasyQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:Monopoly DefinedKEYWORDS:BLOOMS: KnowledgeDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM12.When the cross elasticity of demand between one product and all

21、other products is low, one is generally referring to a(n) _ situation.a.oligopolyb.monopolyc.pure competitiond.substitutione.monopolistic competitionANSWER:bPOINTS:1DIFFICULTY:EasyQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:Monopoly DefinedKE

22、YWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM13.Of the following, which is not an economic rationale for public utility regulation?a.production process exhibiting increasing returns to scaleb.constant cost industryc.avoidance of duplication of facilitiesd.pr

23、otection of consumers from price discriminatione.none of the aboveANSWER:bPOINTS:1DIFFICULTY:EasyQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:The Economic Rationale for RegulationKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEM

24、ODIFIED:6/21/2016 8:45 AM14.The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:a.inverted block pricingb.second-degree price discriminationc.peak-load pricingd.first-degree price discriminatione.none of the aboveANSWER:cPOINTS:1DIF

25、FICULTY:EasyQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:Price and Output Determination for a MonopolistKEYWORDS:BLOOMS: KnowledgeDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM15.In the electric power industry, residential custome

26、rs have relatively _ demand for electricity compared with large industrial users.But contrary to price discrimination, large industrial users generally are charged _ rates.a.similar, similarb.elastic, lowerc.elastic, higherd.inelastic, lowere.inelastic, higherANSWER:ePOINTS:1DIFFICULTY:ModerateQUESTIONTYPE:Multiple ChoiceHASVARIABLES:FalseNATIONALSTANDARDS:United States - BPROG: AnalyticTOPICS:Regulated MonopoliesKEYWORDS:BLOOMS: ComprehensionDATECREATED:6/21/2016 8:45 AMDATEMODIFIED:6/21/2016 8:45 AM16.Which of the following is a source of market power for