Monopolies

For a monopolist, Total Revenue is highest when 

• Marginal Revenue is equal to zero
• Marginal Revenue is the highest
• marginal revenue is negative
• marginal revenue is increasing

The monopolist's profit-maximizing output is

• 0
• 4
• 8
• 10

The monopolist's total revenue equals

• $80
• $160
• $240
• $300

The monopolist's total cost equals

• $20
• $80
• $160
• $0

The monopolist is earning a profit equal to

• $0
• $40
• $80
• $160

Which of the following is a source of monopoly power?

• Scarcity
• Elasticity of demand
• Barriers to entry
• Low Profits

What is a monopoly?

• The exclusive possession or control of the supply or trade in a commodity or service.
• A company that owns 0% of the market share
• A company among many other companies
• A board game

If the government regulates a natural monopoly by setting a price ceiling where the MC equals the demand then

• the monopoly will break even and make no economic profit
• the monopoly will produce the socially optimal quantity
• consumer surplus will decrease
• the monopoly will make more profit

Assume a profit maximizing monopoly was subject to a lump sum tax. Which of the following will occur?         

• Price and quantity will stay the same
• Price will increase and quantity will decrease
• Price will increase but quantity will stay the same           
• The monopoly would produce the socially optimal quantity

If the goal of government regulators of a natural monopoly is to reduce deadweight loss without subsidizing the monopolist, government regulators would set a price equal to:

• Average variable cost
• Average total cost
• Average fixed cost
• Marginal cost