Florida international university – ECO 2023 CHAPTER 15 1)Refer to Figure 15-6

Florida international university – ECO 2023

CHAPTER 15

1)Refer to Figure 15-6. The deadweight loss due to a monopoly is represented by the area

2) Economic efficiency in a free market occurs when
    

3) Refer to Figure 13-2. The marginal revenue from selling the additional unit Qb         instead of Qa equals
 

4) Refer to Figure 15-6. What is the area that represents producer surplus under a monopoly?
 

5) Which of the following is true for a firm with a downward-sloping demand curve for its product?
 

6) Refer to Figure 15-6. What is the area that represents consumer surplus under a monopoly?
 

7) What is the value of the Herfindahl-Hirschman Index?
 

8) Refer to Figure 15-1. If the firm's average total cost curve is ATC2, the firm will
 

9) A merger between the Ford Motor Company and General Motors would be an example of a
 

10) Refer to Figure 15-7. What is the size of the deadweight loss prior to Verizon entering the market and what happens to this deadweight loss after Verizon does enter the market?
 

11) What is a network externality?
 

12) Compared to perfect competition, the consumer surplus in a monopoly
 

13) Refer to Figure 15-3. What is the amount of the monopoly's total cost of production?
 

14) Refer to Figure 15-1. If the firm's average total cost curve is ATC3, the firm will
 

15) Refer to Table 15-1. What is the amount of the firm's profit?
 

16) A Herfindahl-Hirschman Index is calculated by
 

17) Refer to Table 13-1. What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?
 

18) A merger between U.S. Steel and General Motors would be an example of a
 

19) Refer to Table 13-1. What portion of the marginal revenue of the 5th unit is due to the output effect and what portion is due to the price effect?
 

20) Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?
 

21) When a monopoly cuts its price to increase its sales, it experiences a gain in revenue due to the
 

22) A profit maximizing monopoly's price is
 

23) Refer to Figure 15-1. The firm's profit-maximizing price is
 

24) To enter a local cable television market, a firm needs a license from the city government. This is an example of
 

25) When a monopoly cuts its price to increase its sales, it experiences a loss in revenue due to the
26) If we use a narrow definition of monopoly, then a monopoly is defined as a firm
 

27) Refer to Figure 15-9. What is the economically efficient output level and what is the price at that level?
 

28) Refer to Figure 15-6. Compared to a perfectly competitive market, consumer surplus is lower in a monopoly by an amount equal to the
 

29) For a natural monopoly to exist,
 

30) A monopoly is a seller of a product
 

31) Refer to Table 15-1. What is the marginal revenue from the sale of the 12th unit?
 

32) A monopolist faces
 

33) Refer to Figure 15-3. What is the amount of the monopoly's total revenue?
  34) Refer to Figure 15-3. What is the amount of the monopoly's profit?
 

35) Relative to a perfectly competitive market, a monopoly results in
 

36) Refer to Figure 15-3.  What is the profit-maximizing/loss-minimizing output level?
 

37) The demand curve for the monopoly's product is
 

38) Refer to Figure 15-1. To maximize profit, the firm will produce
 

39) Refer to Table 13-1. The Table shows
 

40) Refer to Table 13-1. What is the marginal revenue of the 3rd unit?
 

41) Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
 

42) Refer to Figure 13-1. The marginal revenue from the increase in price from P0 to P1 equals
 

43) Refer to Figure 15-9. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________.
 

44) Refer to Figure 15-3.  What is the price charged for the profit-maximizing output level?
 

45) A monopolist's profit maximizing price and output correspond to the point on a graph
 

46) Refer to Figure 15-1. If the firm's average total cost curve is ATC1, the firm will
 

47) Refer to Figure 15-9. Why won't regulators require that Erickson Power produce the economically efficient output level?
48) Refer to Figure 15-7. Following the entry of Verizon, the subscription price falls from PM to PC. What is the increase in consumer surplus as a result of this change?
49) For a monopolist, marginal revenue
 

50) Refer to Figure 15-5. What is the economically efficient output level?