最新版微观经济学精品习题英文版 (with answer) (14)

Chapter 15 Monopoly

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. _ __

11. 12. 13. 14. 15. 16. 17. 18. 19. 20. _ __

1. Monopolies use their market power to ( c )

a.charge prices that equal minimum average total cost.

b.attain normal profits in the long run.

c.restrict output and increase price.

d.dump excess supplies of their product on the market.

2. If government officials break a natural monopoly up into several smaller firms, then ( c )

petition will force firms to attain economic profits rather than accounting

profits.

petition will force firms to produce surplus output, which drives up price.

c.the average costs of production will increase.

d.the average costs of production will decreas

e.

3. Sizable economic profits can persist over time under monopoly if the monopolist ( b )

a.produces that output where average total cost is at a maximum.

b.is protected by barriers to entry.

c.operates as a price taker rather than a price maker.

d.realizes revenues that exceed variable costs.

4. Most markets are not monopolies in the real world because ( d )

a.firms usually face downward-sloping demand curves.

b.supply curves slope upward.

c.price is usually set equal to marginal cost by firms.

d.there are reasonable substitutes for most goods.

Consider the following demand and cost information for a monopoly.

QUANTITY PRICE TOTAL COST

0 $40 $10

1 $30 $15

2 $20 $25

3 $10 $40

4 $0 $60

5. The marginal revenue of the second unit is ( a )

a.$10

b. $20

c. $30

d. $40

6. The marginal cost of the fourth unit is ( c )

a.$60

b. $40

c. $20

d. $10

7. The maximum profit this monopolist can earn is ( d )

a.$40

b. $30

c. $20

d. $15

8. To maximize profit, the monopolist sets price at ( b )

a.$40

b. $20

c. $0

d. $10

9. If a monopolist has zero marginal costs ( a )

a.it will produce the output at which total revenue is maximized.

b.it will produce in the range in which marginal revenue is still increasing.

c.it will produce at the point at which marginal revenue is at a maximum.

d.it will produce in the range in which marginal revenue is negativ

e.

10. The supply curve for the monopolist ( d )

a.is horizontal. c. is a 45-degree line.

b.is vertical. d. does not exist.

11. Many economists criticize monopolists because they produce at output levels that are not efficient. That is to say, monopolists ( a d )

a.charge too high a price.

b.don’t innovate.

c.produce a large quantity of waste.

d.have no incentive to produce at their minimum ATC.