Name: 

Monopolists are price takers.

The most common source of a barrier to entry into a monopolist's market is that the monopolist owns a key resource necessary for production of that good.

A monopoly is the sole seller of a product with no close substitutes.

A natural monopoly is a monopoly that uses its ownership of natural resources as a barrier to entry into its market.

The demand curve facing a monopolist is the market demand curve for its product.

For the monopolist, marginal revenue is always less than the price of the good.

The monopolist chooses the quantity of output at which marginal revenue equals marginal cost and then uses the demand curve to find the price that will induce consumers to buy that quantity.

The supply curve for a monopolist is always positively sloped.

A monopolist produces an efficient quantity of output but it is still inefficient because it charges a price that exceeds marginal cost and the resulting profit is a social cost.

Using regulations to force a natural monopoly to charge a price equal to its marginal cost of production will cause the monopoly to lose money and exit the industry.

Most economists argue that the most efficient solution to the problem of monopoly is that the monopoly should be publicly owned.

Price discrimination is only possible if there is no arbitrage.

Price discrimination can raise economic welfare because output increases beyond that which would result under monopoly pricing.

Perfect price discrimination is efficient but all of the surplus is received by the consumer.

Universities are engaging in price discrimination when they charge different levels of tuition to poor and wealthy students.

Which of the following is not a barrier to entry in a monopolized market?

A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be

A monopolist maximizes profit by producing the quantity at which

Which of the following statements about price and marginal cost in competitive and monopolized markets is true?

Cengage is a monopolist in the production of your textbook because Cengage:

Refer to Exhibit 4. The profit-maximizing monopolist will choose the price and quantity represented by point



a.     

Refer to Exhibit 4. The efficient price and quantity are represented by point

The inefficiency associated with monopoly is due to

Compared to a perfectly competitive market, a monopoly market will usually generate

The monopolist's supply curve

Using government regulations to force a natural monopoly to charge a price equal to its marginal cost will

The purpose of antitrust (also known as competition) laws is to

Public ownership of natural monopolies

Which of the follow statements about price discrimination is not true?

If regulators break up a natural monopoly into many smaller firms, the cost of production

A monopoly is able to continue to generate economic profits in the long run because

If marginal revenue exceeds marginal cost, a monopolist should