Which of the following is a characteristic of pure monopoly? Multiple Choice O O O O no barriers to entry close substitute products gignificant pricing power multiple sellers OQutput Total Cost o T sse [ s 3080 300 150 200 100 1,200 Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist were forced to produce the socially optimal output through the imposition of a ceiling price, the ceiling price would have to be setat Multiple Choice O $150. $100 $250. O O $200. O \fMarket Share (%) Refer to the data. The Herfindahl index for this industry is Multiple Choice & O O 7 8,700. 3.378. 97 3,369 Refer to the data. If all the firms in the industry merged into a single firm, the Herfindahl index would become Multiple Choice O 1,000. 100,000, 100. O Q 10.000. O Refer to the data showing the six largest firms in an industry. If firms E and F merged, the four-firm concentration ratio would Multiple Choice O be indeterminate because not all of the firms in this market are shown in the table. remain unchanged. rise. La O fall. O Market Share (%) Refer to the data. The Herfindahl index for the industry is Multiple Choice O 1,800. 1,600. 18,000. O Q B0. O Answer the question based on the demand and cost schedules for a monopolistically competitive firm given in the following table. Quantity Price Demanded Total Cost Output s | 1 | 1 [ 1 What output quantity will the monopolistically competitive firm produce to maximize profits? Multiple Choice ( Ik O O O Answer the question on the basis of the following demand and cost data for a specific firm. sise | $me | 6 | 6 | $e | oo | see | s [ & | e sweo | e | 5 | 5 | e e | aas |1 [ 12 | s Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will Multiple Choice fall by $8. decline to zero. fall 1o $4. increase by $6. (OO Answer the question on the basis of the following demand and cost data for a specific firm. \"siese | swmoee | 6 | o | se s | e [ T & | e s [ e |5 [ 5 | e | e | e | 1 | 1 | e | If columns (1) and (3) of the demand data shown are this firm's demand schedule, the profit-maximizing level of output will be Multiple Choice O 11 units. 8 units. 10 units. O O S units. O Answer the question on the basis of the following demand and cost data for a specific firm. bemwaoee | | cosibam ] Total |2 | a4 | & | 15 | e [ 6 | 5 If columns 1 and 3 are this firm's demand schedule, maximum economic prafit will be Multiple Choice () s () s () s (Y & \fSuppose the Herfindahl indexes for industries A, B, and C are 6,480, 7,250, and 6,820, respectively. These data imply Multiple Choice O that market power is greatest in industry B. that market power is greatest in industry A. Q nothing about the degree of concentration across the three industries. O that markset power is greatest in industry C. You are told that the four-firm concentration ratic in an industry is 80. Based on this information you can conclude that Multiple Choice O the four largest firms account for 80 percent of industry sales. O this industry's market structure is monopolistic competition. O each of the four largest firms accounts for 20 percent of industry sales. O each of the top four firms has, on average, 80 percent of industry sales. Market Share (%) The industry characterized by these data is Multiple Choice O a monopolistically competitive industry. a purely competitive industry. an oligopoly. O @ pure monopoly. Suppose that Firm A in this table was found guilty of antitrust violations and split into two firms with equal market share. This would cause the Herfindahl index to Multiple Choice O O O O rise to 2,550 rise to 2,500. fall to 2,500. fall to 2,550. Y's Prices X's Prices Refer to the profits-payoff table for a duopoly. If the firms are acting independently and firm X sets its price at $7, firm Y will achieve the largest profit by selecting Multiple Choice () s a price higher than $6. a price between $4 and $6. O O = O Firm X High Price | Low Price X=$625 | X=$725 Y =$625 | Y=%$475 X=%$475 | X =$400 Y=%$725 | Y =%$400 FirmY Low Price |High Price Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. If this is a sequential game and X moves first, the most likely profit is Multiple Choice O $625,000 for firm X and $625,000 for firm Y. O $725,000 for firm X and $475,000 for firm Y. O $400,000 for firm X and $400,000 for firm Y. m K475 0NN frr firm X and R72E000 far firm Beta's Price Policy High Low Al g0 | B s30 High Alpha's $20 $10 Price Policy C|$1O D $15 Low $30 $15 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Alpha follows a low-price policy, and Beta follows a low-price policy Multiple Choice O Alpha will realize 8 $30 million profit and Beta a $30 million profit Alpha will realize a $10 million profit and Beta a $10 million profit Alpha will realize a $15 millien profit and Beta a $15 million profit O Alpha will realize a $20 million profit and Beta a $20 million profit. T A High Price | Low Price | A=s250 | a=$35 B 5 n || B=$250 | B=%200 E 18| a=%200 | A=%175 a z 3| B=%$325 | B=%175 Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Assume that firm B adopts a low-price strategy; firm A maintains a high-price itrategy. Compared to the results from a high-price strategy for both firms, firm B will now Multiple Choice O gain $75 million in profit and firm A will lose $50 million in profit O gain $50 million in profit and firm A will lose $50 million in profit. O lose $75 million in profit and firm A will gain $50 million in profit PN o e st i A A T The industry shown in this table illustrates Multiple Choice O O O a, pure competition. oligopoly. monopolistic competition. pure monopaly. wondrs, Quantity lefer to the diagram for a non-collusive oligopolist. Suppose that the firm is initially in equilibrium at point , where the equilibrium price and quantity are Pand Q. If the firm's rivals will match any price increase but jnore any price reduction, then the firm's demand curve will be (moving from left to right) Multiple Choice O D4ED. O DyED;. O D4ED;. m D2ED1. Which of the following is nof a barrier to entry? Multiple Choice O O O O #-inefficiency ownership of essential resources patents economies of scale \fAnswer the gquestion on the basis of the accompanying demand schedule. Quantity Demandes The marginal revenue obtained from selling the fourth unit of output is Multiple Choice O w $4. $8. O O $1. O \fNumber of Price Baskets Sold The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the change in total revenue if she raises the price from $14 to $167 Multiple Choice O -$140 $28 $140 O () -ss O Suppose that a pure monopalist can sell 51 units of output at $20 per unit and 52 units at $19.90 per unit. The marginal revenue of the 52nd unit of output is Multiple Choice O $14.80. $19.90. $1,034.80 O O $010. O Quantity of Output Total Cost |Product Price] o | e fo0 260 360 290 250 350 260 1600 If the profit-maximizing pure monopelist whose informaticn is in the accompanying table is able to price discriminate, charging each customer the price associated with each given level of cutput, how many units will the firm produce? Multiple Choice O s O O