曼昆經(jīng)濟學原理微觀第五版測試題庫15

1、chapter 15monopolytrue/false1.monopolists can achieve any level of profit they desire because they have unlimited market power.ans:fdif:2ref:15-0nat:analyticloc:monopolytop:monopolymsc:interpretive2.even with market power, monopolists cannot achieve any level of profit they desire because they will

2、sell lower quantities at higher prices.ans:tdif:2ref:15-0nat:analyticloc:monopolytop:monopolymsc:interpretive3.one characteristic of a monopoly market is that the product is virtually identical to products produced by competing firms.ans:fdif:2ref:15-1nat:analyticloc:monopolytop:monopolymsc:definiti

3、onal4.the fundamental cause of monopolies is barriers to entry.ans:tdif:2ref:15-1nat:analyticloc:monopolytop:monopolymsc:interpretive5.the de beers diamond company advertises heavily to promote the sale of all diamonds, not just its own. this is evidence that it has a monopoly position to some degre

4、e.ans:tdif:1ref:15-1nat:analyticloc:monopolytop:monopolymsc:interpretive6.the de beers diamond company is not worried about differentiating its product from all other gemstones.ans:fdif:1ref:15-1nat:analyticloc:monopolytop:monopolymsc:interpretive7.the amount of power that a monopoly has depends on

5、whether there are close substitutes for its product.ans:tdif:1ref:15-1nat:analyticloc:monopolytop:monopolymsc:interpretive8.if the abc company owns the exclusive rights to mine land in afghanistan for lapis lazuli, a rare stone used in jewelry which is found only in afghanistan, the company benefits

6、 from a barrier to entry.ans:tdif:1ref:15-1nat:analyticloc:monopolytop:monopolymsc:applicative9.copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers.ans:tdif:2ref:15-1nat:analyticloc:monopolytop:patentsmsc:interpretive10.if the government deems a newly i

7、nvented drug to be truly original, the pharmaceutical company is given the exclusive right to manufacture and sell the drug for 50 years.ans:fdif:1ref:15-1nat:analyticloc:monopolytop:patentsmsc:interpretive11.a natural monopoly has economies of scale for most if not all of its range of output.ans:td

8、if:2ref:15-1nat:analyticloc:monopolytop:natural monopolymsc:applicative12.declining average total cost with increased production is one of the defining characteristics of a natural monopoly.ans:tdif:1ref:15-1nat:analyticloc:monopolytop:natural monopolymsc:definitional13.a monopolist maximizes profit

9、 by producing an output level where marginal cost equals price.ans:fdif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:interpretive14.a monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost.ans:f

10、dif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:applicative15.average revenue for a monopoly is the total revenue divided by the quantity produced.ans:tdif:1ref:15-2nat:analyticloc:monopolytop:average revenuemsc:definitional16.for a monopoly, marginal revenue is often greater than th

11、e price they charge for their good.ans:fdif:1ref:15-2nat:analyticloc:monopolytop:marginal revenuemsc:interpretive17.like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost.ans:tdif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:inte

12、rpretive18.like competitive firms, monopolies charge a price equal to marginal cost.ans:fdif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:interpretive19.a monopolist produces where p > mc = mr.ans:tdif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:interpretive20.a mon

13、opolist produces where p = mc = mr.ans:fdif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:interpretive21.a monopolist does not have a supply curve because the firms decision about how much to supply is impossible to separate from the demand curve it faces.ans:tdif:2ref:15-2nat:analytic

14、loc:monopolytop:supply curvemsc:interpretive22.a monopolists supply curve is vertical.ans:fdif:1ref:15-2nat:analyticloc:monopolytop:supply curvemsc:applicative23.a monopolists supply curve is horizontal.ans:fdif:1ref:15-2nat:analyticloc:monopolytop:supply curvemsc:applicative24.during the life of a

15、drug patent, the monopoly pharmaceutical firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.ans:tdif:1ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:interpretive25.the socially efficient quantity is found where the demand curve intersects the m

16、arginal cost curve.ans:tdif:2ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:interpretive26.the deadweight loss for a monopolist equals one-half of its profits for any given level of output.ans:fdif:2ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:interpretive27.a monopoly creates a de

17、adweight loss to society because it earns both short-run and long-run positive economic profits.ans:fdif:2ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:interpretive28.a monopoly creates a deadweight loss to society because it produces less output than the socially efficient level.ans:tdif:2

18、ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:interpretive29.suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of 100 units, and charges a price of $50. the socially efficient level of output is 200 units. assume that the demand curve and

19、 marginal revenue curve are the typical downward-sloping straight lines. the monopoly deadweight loss equals $4,000.ans:fdif:3ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:analytical30.suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of

20、100 units, and charges a price of $50. the socially efficient level of output is 200 units. assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. the monopoly deadweight loss equals $2,000.ans:tdif:3ref:15-3nat:analyticloc:monopolytop:deadweight los

21、smsc:analytical31.suppose a profit-maximizing monopolist faces a constant marginal cost of $20, produces an output level of 100 units, and charges a price of $50. the socially efficient level of output is 200 units. assume that the demand curve and marginal revenue curve are the typical downward-slo

22、ping straight lines. the monopoly deadweight loss equals $1,500.ans:tdif:3ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:analytical32.in order for a firm to maximize profits through price discrimination, the firm must have some market power and be able to prevent arbitrage.ans:tdif:2ref:15-4

23、nat:analyticloc:monopolytop:price discriminationmsc:interpretive33.price discrimination is prohibited by antitrust laws.ans:fdif:2ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive34.a monopolist earns higher profits by charging one price than by practicing price discrimination

24、.ans:fdif:3ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive35.a monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.ans:tdif:3ref:15-4nat:analyticloc:monopolytop:perfect price discriminationmsc:interpretive36.by selling hardc

25、over books to die-hard fans and paperback books to less enthusiastic readers, the publisher is able to price discriminate and raise its profits.ans:tdif:1ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive37.movie theatres charge different prices to different groups of people ba

26、sed on the differing marginal costs that exist from group to group.ans:fdif:1ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive38.airlines often separate their customers into business travelers and personal travelers by giving a discount to those travelers who stay over a satur

27、day night.ans:tdif:1ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive39.university financial aid can be viewed as a type of price discrimination.ans:tdif:1ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive40.by offering lower prices to customers who buy a

28、 large quantity, a monopoly is price discriminating.ans:tdif:1ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:interpretive41.goods that do not have close substitutes have downward-sloping demand curves.ans:tdif:1ref:15-4nat:analyticloc:monopolytop:demand curvemsc:interpretive42.if the go

29、vernment regulates the price a natural monopolist can charge to be equal to the firms average total cost, the firm has no incentive to reduce costs.ans:tdif:2ref:15-5nat:analyticloc:monopolytop:regulationmsc:interpretive43.if the government regulates the price a natural monopolist can charge to be e

30、qual to the firms marginal cost, the government will likely need to subsidize the firm.ans:tdif:2ref:15-5nat:analyticloc:monopolytop:regulationmsc:interpretive44.antitrust laws give the justice department the authority to challenge potential mergers between companies in an effort to safeguard societ

31、y from monopoly power.ans:tdif:1ref:15-5nat:analyticloc:monopolytop:antitrustmsc:interpretive45.some companies merge in order to lower costs through efficient joint production.ans:tdif:1ref:15-5nat:analyticloc:monopolytop:antitrustmsc:interpretive46.a common solution to monopoly in european countrie

32、s is public ownership.ans:tdif:1ref:15-5nat:analyticloc:monopolytop:monopolymsc:interpretive47.the proper level of government intervention is unclear when dealing with a monopoly.ans:tdif:1ref:15-5nat:analyticloc:monopolytop:regulationmsc:interpretive48.the government may choose to do nothing to red

33、uce monopoly inefficiency because the “fix” may be worse than the problem.ans:tdif:1ref:15-5nat:analyticloc:monopolytop:do nothingmsc:interpretive49.government intervention always reduces monopoly deadweight loss.ans:fdif:1ref:15-5nat:analyticloc:monopolytop:do nothingmsc:interpretive50.firms with s

34、ubstantial monopoly power are quite common because many goods are truly unique.ans:fdif:1ref:15-6nat:analyticloc:monopolytop:monopolymsc:interpretiveshort answer1.describe how government is involved in creating a monopoly. why might the government create one? give an example.ans:the government can c

35、reate a monopoly by giving a single firm the exclusive right to produce some good. monopolies are created for many reasons. when an industry is characterized by high fixed costs, a single firm can usually supply the entire market at a lower cost than having multiple firms in the industry. examples i

36、nclude most utility companies. the government also grants sole ownership of inventions through patent laws in order to help eliminate the market failure that is likely to otherwise occur in the markets for those goods. patents encourage creativity and research and development.dif:2ref:15-1nat:analyt

37、icloc:monopolytop:patents | regulationmsc:applicative2.what is the defining characteristic of a natural monopoly? give an example of a natural monopoly.ans:the defining characteristic of a natural monopoly is when a firm can supply a good or service to an entire market at a lower cost than could two

38、 or more firms. the example in the text is a bridge.dif:2ref:15-1nat:analyticloc:monopolytop:natural monopolymsc:definitional3.in the market for "home heating" consumers typically have several options (e.g., electricity, heating fuel, natural gas, propane, etc.), yet we often think of firm

39、s in this industry as behaving like monopolists. discuss the context in which your electricity provider is a monopolist. is this characterization universally applicable? explain your answer.ans:in this case, the firms are monopolists in the short run when consumers are unable to change their "h

40、ome heating" systems. in the long run, consumers can change from electric appliances to natural gas appliances and thus lessen the monopoly power of utility providers. as long as consumers are able to substitute, in the long run the monopoly pricing power is reduced.dif:3ref:15-2nat:analyticloc

41、:monopolytop:monopolymsc:analytical4.there has been much discussion of deregulating electricity and natural gas delivery companies in the united states. discuss the likely effect of deregulation on prices in these two industries.ans:if deregulation leads to increased competition, then production and

42、 prices should move toward the competitive equilibrium. if deregulation does not lead to increased competition, then the monopoly production and price outcome is likely. the success of deregulation movements hinges on their ability to use markets to promote competitive market outcomes. if the indust

43、ry is characterized by economies of scale, deregulation may worsen rather than improve the market as costs and prices could rise if more than one firm supplies output to the market.dif:2ref:15-2nat:analyticloc:monopolytop:regulationmsc:analytical5.explain how a profit-maximizing monopolist chooses i

44、ts level of output and the price of its goods.ans:a profit-maximizing monopolist produces the output level where marginal revenue equals marginal cost and charges the corresponding price from the market demand curve. note that a monopolist charges a price that exceeds marginal cost, unlike a competi

45、tive firm, for which price equals marginal cost.dif:2ref:15-2nat:analyticloc:monopolytop:profit maximizationmsc:analytical6.graphically depict the deadweight loss caused by a monopoly. how is this similar to the deadweight loss from taxation?ans:a profit-maximizing monopolist will choose to produce

46、q0 units of output and sell at price p0. however, marginal cost is mc0. this is identical to the deadweight loss of taxation when the tax forces a wedge between market price and marginal cost.dif:2ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:analytical7.what is the deadweight loss due to p

47、rofit-maximizing monopoly pricing under the following conditions: the price charged for goods produced is $10. the intersection of the marginal revenue and marginal cost curves occurs where output is 100 units and marginal revenue is $5. the socially efficient level of production is 110 units. the d

48、emand curve is linear and downward sloping, and the marginal cost curve is constant.ans:1/2*(110-100)*($10-$5) = $25dif:3ref:15-3nat:analyticloc:monopolytop:deadweight lossmsc:applicative8.assume that a monopolist decides to maximize revenue rather than profit. how does this operating objective chan

49、ge the size of the deadweight loss? if you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue? explain your answer.ans:a revenue maximizer operates where mr = 0. this solution moves t

50、he monopolist closer to the socially optimal competitive outcome and reduces deadweight loss. revenue maximization is potentially a more "socially" optimal objective for monopoly markets than profit maximization.dif:3ref:15-3nat:analyticloc:monopolytop:total revenuemsc:analytical9.one exam

51、ple of price discrimination occurs in the publishing industry when a publisher initially releases an expensive hardcover edition of a popular novel and later releases a cheaper paperback edition. use this example to demonstrate the benefits and potential pitfalls of a price discrimination pricing st

52、rategy.ans:the answer should address the three basic lessons of price discrimination. first, price discrimination is a rational strategy that can lead to higher monopoly profits. second, price discrimination requires an ability to separate customers according to their willingness to pay. third, pric

53、e discrimination can raise economic welfare.dif:2ref:15-4nat:analyticloc:monopolytop:price discriminationmsc:analytical10.what are the four ways that government policymakers can respond to the problem of monopoly?ans:first, the government can try to make monopolized industries more competitive by us

54、ing the power of antitrust laws. second, the government can regulating the behavior of monopolies, which usually occurs with natural monopolies. third, the government can own and run a monopoly. four, the government can do nothing.dif:2ref:15-5nat:analyticloc:monopolytop:governmentmsc:interpretive11

55、.give some examples of the benefits and costs of antitrust laws.ans:benefits include promoting competition by preventing mergers and breaking-up companies. costs are that they may increase cost of operating if they restrict synergy mergers.dif:2ref:15-5nat:analyticloc:monopolytop:antitrustmsc:interp

56、retive12.in many countries, the government chooses to "internalize" the monopoly by owning monopoly providers of goods and services. (in some cases these firms are "nationalized," and the government actually buys or confiscates firms that operate in monopoly markets). what would be the advantages and disadvantages of such an approach to ensure that the "best inte