Which of the following would NOT lead to a monopoly being created?

Group of answer choices

A government license is needed in order to produce the product.

One company controls a key resource that is necessary to product the product.

There is a company that holds a patent on an idea needed to produce the product.

Costs to enter a particular market are very low.

Flag question: Question 5Question 51 pts

Franchises like McDonald's often grant local monopoly power to their franchises. This leads to

Group of answer choices

a natural monopoly in the local market.

a barrier to entry into the local market.

low revenue for the franchisee in the local market.

low demand for the product in the local market.

Flag question: Question 6Question 61 pts

Ride-sharing companies reduce monopoly power of taxi drivers primarily because they

Group of answer choices

have much higher costs to provide driving services.

increase the gasoline costs of taxi drivers.

reduce the value of a taxi license issued by the government.

are able to control the entry and exit onto freeways.

Flag question: Question 7Question 71 pts

Which of the following is generally true for a monopolist as it produces more?

Group of answer choices

marginal revenue decreases faster than the price

average revenue increases fast than average total cost

marginal cost decreases faster than the marginal revenue

average revenue increases more than the price of the product

Flag question: Question 8Question 81 pts

Marginal revenue is usually below the price for a monopolist. This is because to sell more

Group of answer choices

the monopolist does not need to change prices.

the monopolist has to raise prices

the monopolist has to lower prices

we cannot say how the monopolist will change prices.

Flag question: Question 9Question 91 pts

If we compare monopoly to perfect competition we will find that

Group of answer choices

deadweight loss is greater for perfect competition.

deadweight loss cannot be determined for either market.

deadweight loss is greater for the monopoly.

deadweight loss is the same for the two types.

Flag question: Question 10Question 101 pts

All else the same in a monopoly market compared to a perfectly competitive market,

Group of answer choices

producer and consumer surplus are larger in the monopoly.

producer surplus is larger in perfect competition but consumer surplus is less.

producer and consumer surplus are larger in perfect competition.

producer surplus is larger in the monopoly but consumer surplus is less.

Flag question: Question 11Question 111 pts

All else the same in a monopoly market compared to a perfectly competitive market,

Group of answer choices

monopoly average total cost is greater than perfectly competitive average total cost.

the monopoly price is greater than the perfectly competitive price.

monopoly price is greater than marginal cost while the perfectly competitive price is less than marginal cost.

the monopoly fixed cost must be smaller than the perfectly competitive fixed cost.

Flag question: Question 12Question 121 pts

An unintended consequence of rent seeking may be

Group of answer choices

higher prices that the monopolist can charge customers.

lower fixed costs of production for the monopolist.

higher average total costs of production.

lower marginal revenue from reduced demand.

Flag question: Question 13Question 131 pts

A monopolist lobbies the government and regulators in order to

Group of answer choices

reduce the length of patents and copyrights.

increase the marginal cost of producing products.

maintain or increase barriers to entry.

keep prices in the market artificially low.

Flag question: Question 14Question 141 pts

When a monopolist spends to lobby the government and regulators an unintended result is

Group of answer choices

more firms may ultimately enter the market.

marginal revenue may decrease.

average total costs of production may decrease.

profits may actually decrease.

Flag question: Question 15Question 151 pts

Which of the following is NOT a necessary condition for price discrimination?

Group of answer choices

buyers can be separated by willingness to pay.

buyers cannot resell a product at a lower price.

buyers can be identified based on characteristics.

sellers fixed costs of production must be low.

Flag question: Question 16Question 161 pts

If a monopolist can perfectly price discriminate then the market outcome

Group of answer choices

can be the same as the perfectly competitive outcome.

will be even less efficient than the standard monopoly outcome.

creates an incentive for even more market deadweight loss.

cannot be determined due to the uncertainty in the market.

Flag question: Question 17Question 171 pts

Which of the following is necessary for price discrimination?

Group of answer choices

the demand for the product must be a horizontal demand curve

all customers must have the same willingness to pay for the product

allowing buyers to resell their products to someone else

separating customers into groups based on characteristics

Flag question: Question 18Question 181 pts

When a monopolist price discriminates they are able to

Group of answer choices

create a larger amount of deadweight loss.

gain a larger percentage of total surplus.

increase consumer surplus through greater efficiency.

reduce the producer surplus available to them.

Flag question: Question 19Question 191 pts

Price discrimination leads to

Group of answer choices

a decrease in the average total costs of production.

a decrease in deadweight loss compared to a standard monopoly.

a decrease in the profit of the monopolist.

a decrease in the quantity the monopolist produces.

Flag question: Question 20Question 201 pts

As price falls for a monopolist then

Group of answer choices

average revenue falls and marginal revenue falls by even more

average revenue rises and marginal revenue falls by even less

average revenue rises and marginal revenue falls by even more

average revenue falls and marginal revenue falls by even less

Flag question: Question 21Question 211 pts

If a monopolist can price discriminate then

Group of answer choices

producer surplus increases and consumer surplus decreases.

producer surplus and consumer surplus decreases.

producer surplus decreases and consumer surplus increases.

producer surplus and consumer surplus increases.