ECON 213 quiz 10 complete solutions correct answers key

Liberty University ECON 213 quiz 10 complete solutions correct answers key

Two different versions

Version A Quiz

Question 1 When resources are used to secure monopoly rights through the political process:

Question 2 Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the questions that follow. The profit made by this profit­maximizing firm is:

Question 3 Refer to the accompanying figure to answer the questions that follow. If the government forces a firm to produce at the point that generates the greatest welfare for society, that firm would make _________ in profits.

Question 4 Patents and copyrights can:

Question 5 At low price levels, demand tends to be _________ and the price effect is _________, relative to the output effect.

Question 6 The _________ means that the government can regulate a natural monopoly to minimize deadweight loss without forcing the private firm out of the market.

Question 7 Refer to the accompanying figure to answer the questions that follow. Which of the following is the most efficient price and quantity combination for society?

Question 8 Refer to the accompanying figure to answer the questions that follow. The figure shows which type of market?

Question 9 Refer to the accompanying figure. The revenue received by the profit­maximizing monopolist in this market is represented by:

Question 10 The typical result of monopoly is __________ prices and __________ output than we find in a competitive market.

Question 11 The demand curve for Angel’s Airport Shuttle is downward­sloping. With only this information, it can be concluded that Angel’s Airport Shuttle:

Question 12 Problems raising capital is an example of:

Question 13 When marginal revenue is negative, the:

Question 14 Control of resources, problems raising capital, and economies of scale are all examples of:

Question 15 Refer to the accompanying figure to answer the questions that follow. The consumer surplus associated with this profit­maximizing monopoly is represented by areas:

Question 16 When a monopolist lowers a price from $80 to $70, the quantity that the firm is able to sell increases from 100 to 150. The change in revenue associated with the price effect is equal to:

Question 17 Papa Joe’s Car Dealership is the only dealership in Victorville, California. The owner, Papa Joe: experiences large economies of scale. Because he is the only seller of cars in the town,

Question 18 Willow Park is a small community in Texas with only one gas station. The price of gasoline in Willow Park most likely:

Question 19 Refer to the accompanying figure to answer the questions that follow. The profit­maximizing price and quantity are:

Question 20 Two government­created barriers to entry are:

Version B Quiz

Question 1 A monopoly:

Question 2 When marginal revenue is negative, the:

Question 3 If a monopolist is producing a quantity where marginal revenue is equal to $125 and the marginal cost is equal to $125, the monopolist should:

Question 4 Refer to the accompanying figure to answer the questions that follow. When the price changes from $50 to $30, the price effect leads to a loss of _________ in revenue.

Question 5 The equation of a firm’s marginal revenue curve is estimated to be P = 50 – Q (quantity), and the equations of their marginal cost curve is estimated to be P = 10 + 3Q. The profitmaximizing price for this firm is:

Question 6 Which of the following is a characteristic of a monopoly but not of a competitive market?

Question 7 One way the government can restore competitiveness in a market is through:

Question 8 Refer to the accompanying figure to answer the questions that follow. The profit when a firm is profit­maximizing is:

Question 9 Economies of scale is an example of:

Question 10 Refer to the accompanying figure to answer the questions that follow. If the government forces a firm to produce at the point that generates the greatest welfare for society, that firm would make _________ in profits.

Question 11 Taxi medallions are an example of:

Question 12 One argument against patent and copyright laws is that they:

Question 13 A price­maker:

Question 14 Which of the following is a characteristic of a monopoly but not a characteristic of a competitive market?

Question 15 Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the questions that follow. The profit made by this profit­maximizing firm is:

Question 16 When marginal revenue is positive, the:

Question 17 Both monopolies and competitive firms:

Question 18 Inefficient output and price, few choices, and rent seeking are all problems associated with:

Question 19 Refer to the accompanying figure to answer the questions that follow. Which of the following is the most efficient price and quantity combination for society?

Question 20 The best way to limit competition is to: