46. A significant long-run difference between monopoly and perfect competition is that:

A) there are free entry and exit in a monopolized industry, whereas barriers to entry exist in a competitive market.

B) competitive firms control market supply, whereas a monopolist's influence on market supply is imperceptible.

C) profits are driven to zero in a perfectly competitive industry, whereas positive profits may persist in a monopolized industry.

D) profits are driven to zero in a monopolized industry, whereas positive profits may persist in competitive industry.

47. A price-discriminating monopolist:

A) charges the same price to everyone.

B) is able to capture some of the consumers' surplus.

C) has the same level of output as a normal monopolist.

D) produces where price equals total cost.

48. Price discrimination requires:

A) identifying groups of customers with different elasticities.

B) separating customers in some way.

C) limiting customers' ability to re-sell the product among different groups.

D) all the options listed to be successful.

49. monopolist engages in price discrimination to:

A) increase output beyond the profit-maximizing level.

B) further restrict output to increase its profits.

C) allow some persons to purchase the good who could not normally afford to do so.

D) earn more profit than would be possible if every buyer paid the same price.

50. A movie theater is a price discriminating monopolist and charges a higher ticket price for late-evening showings. Which of the following statements is most likely true?

A) Late-evening moviegoers have perfectly inelastic demands.

B) Late-evening moviegoers have less elastic demands than daytime or early-evening moviegoers.

C) Late-evening moviegoers have more elastic demands than daytime or early-evening moviegoers.

D) Daytime and early-evening moviegoers have perfectly elastic demands.

51. Suppose quantity demanded is 200 when price is $10. If a monopolist who was initially charging a

price of $10 discovered consumers' individual demand and is selling each unit separately at the

maximum price consumers are willing to pay, this monopolist is practicing:

1. Single price policy,
2. First degree price discrimination,
3. Is allowing some persons to purchase the good who could not normally afford to do so
4. Second degree price discrimination.

52. Under monopolistic competition, the demand curve faced by an individual firm is downward sloping because:

A) sellers in the market have large market shares.

B) sellers in the market have small market shares.

C) the product of each seller is differentiated from that of others.

D) each seller sells a standardized product.

53. The best example of monopolistic competition is:

A) the tobacco industry. C) the steel industry.

B) the restaurant industry. D) cable services.

54. Product differentiation is a form of:

A) arbitrage. B) non-price competition.

C) price competition. D) price searching

55. In a monopolistically competitive industry, profit-maximizing firms:

A) set price equal to average variable cost.

B) maximize the difference between marginal revenue and marginal cost.

C) adjust output until marginal revenue equals marginal cost.

D) adjust output until price equals marginal cost.