Econ 102 Actual Exam Questions and CORRECT Answers
5 views 0 purchase
Course
Econ 102
Institution
Econ 102
Econ 102 Actual Exam Questions and
CORRECT Answers
Which of the following would be most likely to have monopoly powers? - CORRECT
ANSWER- A municipal water company
Which of the following is an example of a barrier to entry? - CORRECT ANSWER-
Larry obtains a copyright for the new computer gam...
Econ 102 Actual Exam Questions and
CORRECT Answers
Which of the following would be most likely to have monopoly powers? - CORRECT
ANSWER✔✔- A municipal water company
Which of the following is an example of a barrier to entry? - CORRECT ANSWER✔✔-
Larry obtains a copyright for the new computer game that he invented.
The defining characteristic of natural monopoly is? - CORRECT ANSWER✔✔- Economies
of scale over the relevant range of output.
Suppose a firm has a monopoly on the scale of a computer game and faces a downward-
sloping demand curve. When selling the 36th game, the firm will always receive? -
CORRECT ANSWER✔✔- Less marginal revenue on the 36th game than it received on the
35th game.
A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units
of output for $43.60 per unit. The marginal revenue of output is? - CORRECT
ANSWER✔✔- -$376.40
Which of the following statements is correct? - CORRECT ANSWER✔✔- Panel B
represents the typical demand curve for a perfectly competitive firm, and Panel A represents
the typical demand curve for a monopoly.
In order to maximize profits, the monopolist should produce? - CORRECT ANSWER✔✔- 12
units
In order to maximize profits, the monopolist should charge a price of? - CORRECT
ANSWER✔✔- $20
If the monopolist produces 5 units, what is it average revenue? - CORRECT ANSWER✔✔-
$18
, What price should the firm charge to maximize profit? - CORRECT ANSWER✔✔- $7
A monopolist will choose to increase output when? - CORRECT ANSWER✔✔- At the
present level of output, marginal revenue exceeds marginal cost.
Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At
10 units of production, the firm has an average fixed cost equal to $10 and an average
variable cost equal to $13. How much total profit is the firm earning at this price? -
CORRECT ANSWER✔✔- $40
Based upon the information shown, what is the total revenue for Bearclaws, given that it
maximizes profits? - CORRECT ANSWER✔✔- $980
The marginal revenue curve for a monopoly firm is depicted by curve? - CORRECT
ANSWER✔✔- A
Given that Bearclaws chooses the profit maximizing price and quantity, what profit level will
it obtain? - CORRECT ANSWER✔✔- $280
The deadweight loss that arises from a monopoly is a consequence of the fact that the
monopoly... - CORRECT ANSWER✔✔- Quantity is lower than the socially optimal quantity
The deadweight loss caused by a profit-maximizing monopoly amounts to? - CORRECT
ANSWER✔✔- $500
A benevolent social planner would have the monopoly operate at an output level... -
CORRECT ANSWER✔✔- Equal to Q0
If the monopoly operates at an output level less than Q0, then an increase in output toward
(but not exceeding) Q0 would? - CORRECT ANSWER✔✔- Lower the price and raise total
surplus
Price discrimination requires the firm to? - CORRECT ANSWER✔✔- Separate customers
according to their willingness to pay.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
