1.Monopoly is defined by barriers to entry, one of those being:

a. Ownership of essential resources

b.The price taking ability of the firm

c.The availability of close substitutes for a product

d.Diseconomies of scale

2.A condition where a monopoly market is more likely to occur is when:

a.Fixed capital costs are small relative to total costs

b.Output demand is relatively elastic

c.Economies of scale are large relative to market demand

d.Firms have U-shaped, average-total-cost curves

3.One characteristic of a pure monopolist who is not price discriminating is that they would need to lower prices to sell additional products. This explains why:

a.Marginal revenue is less than average revenue

b.There are barriers to entry in pure monopoly

c.Total revenues are greater than total costs at the profit maximizing level of output

d.A monopoly has a perfectly elastic demand curve

4.For a pure monopolist, the demand curve in their market is:

a.More elastic than the demand curve confronting a competitive firm

b.Horizontal

c.Created by vertically summing the individual demand curves for the buyers

d.The same as the industry's demand curve

5.A pure monopoly, profit-maximizing firm, will always choose to produce their product:

a.Only where marginal revenue is zero

b.In the inelastic range of its demand curve

c.In the elastic range of its demand curve

d.Only where total costs are zero

6.If a pure monopoly were to charge a price in the inelastic range, then that would:

a.Decrease total revenue, total cost, and profit

b.Increase total revenue, decrease total cost, and decrease profit

c.Increase total revenue, increase total cost, and decrease profit

d.Decrease total revenue, increase total cost, and decrease profit

7.

According to the graph showing the short-run revenue curves for a monopolist. What price should be charged in order to maximize total revenue? C U Pu Price per ticket Demand MR O Qc Tickets per gameRefer to the graph below showing the short-run revenue curves for a monopolist. Demand is unit elastic at what price? C U Pu Price per ticket Demand MR 0 Tickets per gameRefer to the graph below. In the short run, this monopolist will: MC ATC 10 6 4 10 25 30 60Refer to the graph below. The profit-maximizing monopolist in it will set its price at: MC ATC 10 6 4 10 25 30 60\fRefer to the graph below. This monopolist: MC a b h D Q MRRefer to the graph below. This monopolist: CO MC a g b h D Q MR