Question

ID: A 9. When a monopolist is able to sell its product at different prices, it is engaging in a quality adjusted pricing. b. price differentiation. c. price discrimination. d. distribution pricing. 10. A natural monopoly occurs when a. the product is sold in its natural state (such as water or diamonds). b. there are economies of scale over the relevant range of output. c. the firm is characterized by a rising marginal cost curve. d. production requires the use of free natural resources, such as water or air. Patent and copyright laws are major sources of a. natural monopolies. b. government-created monopolies. C. resource monopolies. d. None of the above are correct. When a firm operates under conditions of monopoly, its price is a. not constrained. b. constrained by marginal cost. c. constrained by demand. d. constrained only by its social agenda. When a monopolist decreases the price of its good, consumers a. continue to buy the same amount. b. buy more. c. buy less. d. may buy more or less, depending on the price elasticity of demand. 14. Marginal revenue for a monopolist is computed as a. average revenue divided by quantity sold. b. average revenue times quantity divided by price. c. total revenue divided by quantity sold. d. change in total revenue per one unit increase in quantity sold. In a market characterized by monopoly, the market demand curve is a. upward sloping. b. horizontal. c. downward sloping. d. vertical. True/False Indicate whether the sentence or statement is true or false. 16. When a monopoly charges a higher price, fewer of its goods are sold. 17. Average revenue for a monopoly is the total revenue divided by the quantity produced. 18. For a monopoly, marginal revenue is often greater than the price they charge for their good. 19. It doesn't make sense to talk about a monopolist's supply curve. 20. By offering lower prices to customers who buy a large quantity, a monopoly is price discriminating.

Answer 1

ans 9=option c=price discrimination

Price discrimination occurs when a company charges a different price to different clusters of customers for an identical commodity, for reasons not linked to costs of supply.

ans 10=option b

ans 11=option b

ans 12=option c

ans 13=option b

ans 14=option d

ans 15=option c