Unit IV AP Microeconomics

Front

Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition?

Back

In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product.

Front

A monopoly can price discriminate between two groups of consumers if each group has

Back

a different willingness to pay.

Front

Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is

Back

$150

Front

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

Back

4 units per year and the price will be $6.

Front

For this monopolist, what is the area of consumer surplus? Options: ABHJ, AJGC, ARJ, ARJE

Back

ARJ

Front

Total revenue for this monopoly is represented by area: 0CGE, 0AJE, AJHB, BAJH

Back

0AJE

Front

Economic profits for this monopoly are represented by area:

Back

AJHB

Front

For the firm shown in the graph above, the short-run, profit-maximizing strategy would be to set output at:

Back

Q1, price at P3, and earn an economic profit

Front

A firm with market power engages in price discrimination to:

Back

earn a higher profit

Front

If the monopolist were to produce at the socially optimal output, quantity and price would be: Q1 & P1, Q2 & P3, Q1 & P2, Q3 & P2, Q1, P4

Back

Q2 & P3