Hello, please help me to complete these two pages with a few questions. Please help me with Module 4.2 Page 672 Questions 1 - 10 and Module 4.3 Page 679 -Questions 1 - 7. So, just list the letter that best answers the question and give a brief, just short explanation as to why. Why you think that for example A is correct for number 6, you can include mathematics, fully labeled graphs, sentences in these short explanations. THANK YOU!

Tackle the AP Test: Multiple-Choice Questions Which of the following characteristics is necessary in order for a firm to price-discriminate? 5. A price-discriminating monopolist will charge a higher a. free entry and exit price to consumers with b. differentiated product a. a more inelastic demand. b. a less inelastic demand. c. many sellers c. higher income. d. some control over price d. lower willingness to pay. e. horizontal demand curve e. less experience in the market. Price discrimination 6. In order to carry out perfect price discrimination, a firm 2. is the opposite of volume discounts. must know each b. Is a practice limited to drug companies and the a. customer's income. irline industry. b. competitor's marginal cost. c. can lead to increased efficiency in the market. c. customer's willingness to pay. d. rarely occurs in the real world. d. competitor's advertising budget. e. helps to increase the profit of perfect competitors. e. customer's price elasticity of demand. With perfect price discrimination, consumer surplus 7. A perfectly price-discriminating monopolist a. is maximized. a. creates the highest possible consumer surplus. b. equals zero. b. earns no more than a normal profit. c. is increased c. creates deadweight loss. d. cannot be determined. d. achieves allocation efficiency. e. is the area below the demand curve and above the e. produces less output than a single-price monopolist. marginal cost curve. Which of the following is a common practice of single-price monopolists? a. two-part tariffs b. advance purchase restrictions c. volume discounts d. differentiating customers based on their price elasticity of demand e. operating where marginal revenue equals marginal cost Module 4.3 Review 679Tackle the AP Test: Multiple-Choice Questions For Questions 1-4, refer to the graph provided and assume there 6. Which of the following is always true of a natural is a profit-maximizing monopolist. monopoly? Price, cost, a. It experiences diseconomies of scale. marginal b. ATC is lower if there is a single firm in the market. revenue of c. It occurs in a market that relies on natural resources diamond for its production. $100 d. There are decreasing returns to scale in the industry. e. The government should break up the monopoly to 50 . . . . . achieve efficiency. 7. A price cut will lead to an increase in total revenue if the -MC = ATC a. marginal revenue is zero. 20 0 D b. quantity effect is larger than the price effect. 8 10 c. quantity effect is zero. -20 d. demand curve is inelastic. MR -40 e. demand curve is unit-elastic. Quantity of diamonds 8. Where the average total cost curve for a natural monop- 1. The consumer surplus in this market is oly crosses the demand curve, a. 0. d. 160. a. the marginal cost curve is below the average total b. 40. e. 320. cost curve. c. 80. b. the average total cost curve is rising. 2. The monopolist's total revenue equals c. the marginal revenue curve is rising. a. $80. d. $300. d. the marginal revenue curve also crosses the demand b. $160. e. $480. curve. c. $240. e. the marginal cost curve also crosses the demand curve. 3. The deadweight loss caused by the monopoly is 9. Which of the following is most likely to be higher for a. $20. d. $240. a regulated natural monopoly than for an unregulated b. $80. e. $480. natural monopoly? c. $160. a. product variety d. profit b. quantity e. deadweight loss 4. The monopolist is earning a profit equal to c. price a. $0. d. $160. b. $40. e. $240. 10. In order to allow a natural monopoly to continue oper c. $80. ations in the long run, the regulated price must be at 5. How does a monopoly differ from a perfectly competi- least as high as the tive industry with the same costs? a. minimum point of the marginal cost curve. a. The monopoly produces where MR = MC. b. marginal cost where the marginal cost curve meets b. The monopoly earns normal profit in the long run. the demand curve. c. The monopoly charges a lower price. c. minimum point of the average total cost curve. d. The monopoly produces a smaller quantity. d. minimum point of the average variable cost curve. e. The monopoly can sell as many units as it wants at e. average total cost where the average total cost curve the equilibrium price. meets the demand curve. 672 Micro . Unit 4 Imperfect Competition