Moodle X ( 7 X 6 0 B Q B MC ATC P3 Dollars P 0 Q , Q Q 2 Quantity MR Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of Select one: Oa. P1 O b. P3. O c. P2. Od. P4. Time left 1:31:34Moodle X Total Output Price $100 Marginal Revenue Average Total Cost Marginal Cost $100 2 $100.00 90 $30 80 3 63.00 80 26 60 52.67 4 32 70 49 49.50 49 5 60 29 19.60 6 50 50.00 52 7 40 - 20 52.29 66 8 30 40 55.75 80 9 20 -60 60.67 100 10 10 -80 67.60 130 Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by _ and its average total cost by_ Select one: O a. $20; $27.33 O b. $10; $10.40 O c. $24; $27.33 O d. $30; $20.50 oft 1:32:31Moodle X Price P2 P Demand 0 Q2 Q Quantity Marginal Revenue In the accompanying diagram, demand is relatively elastic Select one: O a. in the P2P1 price range. O b. in the OP, price range. CS O c. in the PaPA price range. O d. only at price P2. Time left 1:33:10le X X O Q Q Q B Question 42 Not yet answered Marked out of 2 P Flag question Which of the following is characteristic of a pure monopolist's demand curve? Select one: O a. Average revenue is less than price. O b. Its elasticity coefficient is 1 at all levels of output. c. Price and marginal revenue are equal at all levels of output, O d. It is the same as the market demand curve. Previous page Next page Quiz navigation 2 3 5 6 8 9 10 11 12 13 15 16 17 18 19 20 2 22 23 24 25 32 33 34 35 36 37 38 139 40 41 42 45 46 47 48 49 50 26 21 28 29 30 31 Finish attempt .Moodle X Question 49 Not yet answered Marked out of 2 P Flag question If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below average total cost at the resulting output, then Select one: O a. the firm will realize an economic profit. O b. the firm will earn only a normal profit. O c. allocating efficiency will be worsened. O d. the firm must be subsidized or it will go bankrupt Previous page Next page Quiz navigation Time left 1:31:43oodle X - X 6 0 B Q B P P, P. MC=ATC MC=ATC De MR MRA DA 0 QIc 0 Q2 Q 1A Children Adults Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, it should charge prices of Select one: O a. P, to children and P2 to adults. O b. P, to adults and P2 to children. O c. P) to both children and adults. O d. P2 to both children and adults. me left 1:31:56oodle X - X C O B Q B Total Output Price 1 Marginal Revenue Average Total Cost $100 Marginal Cost $100 N $100.00 90 $30 80 3 63.00 80 26 60 52.67 4 70 32 40 49.50 5 40 60 20 49.60 50 6 50 0 50.00 52 7 40 -20 52.29 66 8 30 -40 55,75 80 9 20 -60 60.67 100 10 10 86 67.60 130 Refer to the data for a non discriminating monopolist. This firm will maximize its profit by producing Select one: O a. 3 units. O b. 4 units. O c. 5 units. O d. 6 units. he left 1:32:23Moodle X Average Total Cost ATC Unit Costs ATC2 ATC, 0 Q 2 Quantity Refer to the long-run cost curve for a firm. If the firm produces output Q, at an average total cost of ATC1, then the firm is Select one: O a. producing the profit-maximizing output but is failing to minimize production costs O b. incurring X-inefficiency but is realizing all existing economies of scale. c. incurring X-inefficiency and is failing to realize all existing economies of scale. O d. producing that output with the most efficient combination of inputs and is realizing all economies of scale. Time left 1:32:03Moodle X - X C O B Q B Question 43 Not yet answered Marked out of 2 P Flag question Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is Select one: O a. $4 or less. O b. $3.90 or less. O c. $3.50 or less. O d. $3.40 or less. Previous page Next page Quiz navigation 18 19 20 21 27 23 24 25 10 11 12 13 14 15 16 17 8 9 35 56 37 38 39 40 41 4 43 4 5 4 4 0Question 46 Not yet answered Marked out of ? Y flag question Economic profit in the long run is Select one: a possible for both a pure monopoly and a pure competitor, O b. possible for a pure monopoly but not for a pure competitor, O c. impossible for both a pure monopolist and a pure competitor, O d. only possible when barriers to entry are nonexistent. Not page Previous page Quiz navigation