Quiz I1. In a monopoly, which of the following is considered as the market demand curve?Select the correct response:A. Average sales curveB. Production cost curveC. Marginal cost curveD. Monopolist's demand curve2. How does a deadweight loss affect social welfare?Select the correct response:A. Social welfare will increaseB. Social welfare is not affectedC. Social welfare will decreaseD. There is not enough information3. This is what the monopoly firm earns if it sells one (1) more unit.Select the correct response:A. Average costB. Marginal costC. Average revenueD.Marginal revenue4. This is what the monopoly firm earns if it sells one (1) more unit.Select the correct response:A. Average costB. Marginal costC. Average revenueD. Marginal revenue5. Which of the following best describes price discrimination?Select the correct response:A. Charging the same price for different products for different consumersB. Charging a different price for the same product for different consumersC. Charging different prices for different products for the same consumerD. Charging the same price for different products for the same consumer6. Why is the long run not applicable to a monopoly?Select the correct response:A. They have unique productsB. They have barriers to entryC. Their costs are always variableD. They are regulated by the government7. What is the benefit that consumers can get from having economies of scale in a monopoly?Select the correct response:A. Less production timeB. More productsC. Freedom of choiceD. Lowered prices8.Why is a monopoly able to set its own product's price?Select the correct response:A. They have more buyersB. They have higher costs of productionC. They earn supernormal profitsD. They have market power9. Which of the following is the profit maximization rule in a monopoly?Select the correct response:A. MR > MCB. MR = MC = PC. MC = PD. MR = MC10. Which of these will be earned by a monopoly in the long run?Select the correct response:A. Supernormal profitB. BreakevenC. LossD. Normal profitsQuiz II attached below.

MERALCD OVERPRICE UNJUST, SAYS GROUP Consumer group People Opposed to unWarranted Electricity Rates {POWER} called on the Energy Regulatory Commission {ERC} to proceed with an inadvertently leaked directive ordering the Manila Electric Co. (Meralco) to refund P6927 billion in overrecoveries charged to its consumers from January 2014 to December 2016. Details of the directive were posted on the ERC website last May 4 but later taken down. ERC Commissioner Josefina Magpale-Asirit confirmed the existence of the directive but said the commission en banc has yet to finalize the order next week. Meralco wants the figure reduced P5347 billion, saying it is entitled to retain P108 billion in property tax payments from the overrecove ries. Meralco also wants the refund to be done over a period of 36 months. "ERC should not allow Meralco to pass on its real property taxes to its consumers nor should it be allowed to keep enjoying the fruits of its overcharging. As a matter ofjustice, the full refund should be reflected in next billing cycle,\" said POWER. The group said Meralco had already reaped the full benefit of overcharging P6327 billion from its consumers in the last three years. "Every second that Meralco is allowed to retain and benefit from that money is a stroke of injustice to every electricity consumer and the public at large. ERC should order Meralco to return the whole amount immediately,\" the group stressed. The group lamented that Meralco's overcharging did not only mean higher monthly bills but higher prices of goods and services for the entire country, since most of the country's ofces and factories are located in the Meralco franchise area. POWER urged the ERC to come up with a way to determine such overrecoveries immediately. "Allowing a giant like Meralco to overcharge its hapless consumers for three (3} years is bordering on the criminal," they said. REFERENCE: Araneta, S. (2017, May 13). Meralco overprice unjust, says group. Retrieved from Manila Standard Website: http:f/thestandard.com.phfmobile/article/236505 Questions: (3 items at 10 points) 1. What type of monopoly is Meralco? Explain your answer. 2. What inefficiencies does the over recovery impose on the market? 3. Aside from the government directive, what can be done to prevent Meralco from overcharging