Question

QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal revenue is less than marginal cost then the incremental cost of producing the last unit is less than the incremental revenue. o the incremental cost of producing the last unit exceeds the incremental revenue. profits will always be negative. profits are being maximized. QUESTION 24 Which of the following is NOT a condition for price discrimination to exist? o downward sloping demand curve faced by the firm unpatented product or the service identification of buyers with differing elasticities ability to prevent the resale of the product or service QUESTION 25 For a monopolist marginal revenue is less than price for all units being sold except the first unit. º marginal revenue is greater than price for all units being sold except for the first unit. o marginal revenue is equal to price for all units being sold. there is no relationship between marginal revenue and price.

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QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss. fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases QUESTION 23 If a monopolist produces to a point at which marginal revenue is less than marginal cost then the incremental cost of producing the last unit is less than the incremental revenue. the incremental cost of producing the last unit exceeds the incremental revenue. profits will always be negative. profits are being maximized. QUESTION 24 downward sloping demand curve faced by the firm unpatented product or the service identification of buyers with differing elasticities ability to prevent the resale of the product or service (as it can be sold by large number of sellers) QUESTION 25 For a monopolist marginal revenue is less than price for all units being sold except the first unit. marginal revenue is greater than price for all units being sold except for the first unit. o marginal revenue is equal to price for all units being sold. there is no relationship between marginal revenue and price. (because demang down