经济学原理对应练习--15

621Chapter15MonopolyMultipleChoice1.Whichofthefollowingstatementsiscorrect?a.Acompetitivefirmisapricemakerandamonopolyisapricetaker.b.Acompetitivefirmisapricetakerandamonopolyisapricemaker.c.Bothcompetitivefirmsandmonopoliesarepricetakers.d.Bothcompetitivefirmsandmonopoliesarepricemakers.ANS:BPTS:1DIF:1REF:15-1TOP:MonopolyMSC:Interpretive2.Angeloisawholesalemeatballdistributor.HesellshismeatballstoallthefinestItalianrestaurantsintown.NobodycanmakemeatballslikeAngelo.Asaresult,hisistheonlybusinessintownthatsellsmeatballstorestaurants.AssumingthatAngeloismaximizinghisprofit,whichofthefollowingstatementsistrue?a.Meatballpriceswillbelessthanmarginalcost.b.Meatballpriceswillequalmarginalcost.c.Meatballpriceswillexceedmarginalcost.d.Meatballpriceswillbeafunctionofsupplyanddemandandwillthereforeoscillatearoundmarginalcosts.ANS:CPTS:1DIF:2REF:15-1TOP:PricingMSC:Interpretive3.Amonopoly'smarginalcostwilla.belessthanitsaveragefixedcost.b.belessthanthepriceperunitofitsproduct.c.exceeditsmarginalrevenue.d.equalitsaveragetotalcost.ANS:BPTS:1DIF:2REF:15-1TOP:MarginalcostMSC:Interpretive4.Whichofthefollowingstatementsis(are)trueofamonopoly?(i)Amonopolyhastheabilitytosetthepriceofitsproductatwhateverlevelitdesires.(ii)Amonopoly'stotalrevenuewillalwaysincreasewhenitincreasesthepriceofitsproduct.(iii)Amonopolycanearnunlimitedprofits.a.(i)onlyb.(ii)onlyc.(i)and(ii)d.(ii)and(iii)ANS:APTS:1DIF:2REF:15-1TOP:MonopolyMSC:Interpretive5.YoungJohnnyinheritedtheonlylocalcableTVcompanyintownafterhisfatherpassedaway.Thecompanyiscompletelyunregulatedbythegovernmentandisthereforefreetooperateasitwishes.AssumingthatJohnnyunderstandsthetruepowerofhisnewmonopoly,heisprobablymostexcitedaboutwhichofthefollowingstatements?(i)HewillbeabletosetthepriceofcableTVserviceatwhateverlevelhewishes.(ii)ThecustomerswillbeforcedtopurchasecableTVserviceatwhateverpricehewantstoset.(iii)Hewillbeabletoachieveanyprofitlevelthathedesires.a.(i)onlyb.(ii)onlyc.(i)and(iii)d.Alloftheabovearecorrect.ANS:APTS:1DIF:2REF:15-1TOP:MonopolyMSC:Interpretive622Chapter15/Monopoly6.Whichofthefollowingisanexampleofabarriertoentry?(i)Akeyresourceisownedbyasinglefirm.(ii)Thecostsofproductionmakeasingleproducermoreefficientthanalargenumberofproducers.(iii)Thegovernmenthasgiventheexistingmonopolytheexclusiverighttoproducethegood.a.(i)and(ii)b.(ii)and(iii)c.(i)onlyd.Alloftheaboveareexamplesofbarrierstoentry.ANS:DPTS:1DIF:1REF:15-1TOP:BarrierstoentryMSC:Interpretive7.Whichofthefollowingarenecessarycharacteristicsofamonopoly?(i)Thefirmisthesolesellerofitsproduct.(ii)Thefirm'sproductdoesnothaveclosesubstitutes.(iii)Thefirmgeneratesalargeeconomicprofit.(iv)Thefirmislocatedinasmallgeographicmarket.a.(i)and(ii)b.(i)and(iii)c.(ii)and(iv)d.(i),(ii),and(iii)ANS:APTS:1DIF:2REF:15-1TOP:MonopolyMSC:Interpretive8.Afundamentalsourceofmonopolymarketpowerarisesfroma.perfectlyelasticdemand.b.perfectlyinelasticdemand.c.barrierstoentry.d.availabilityoffreenaturalresources,suchaswaterorair.ANS:CPTS:1DIF:2REF:15-1TOP:BarrierstoentryMSC:Interpretive9.Becausemonopolyfirmsdonothavetocompetewithotherfirms,theoutcomeinamarketwithamonopolyisoftena.notinthebestinterestofsociety.b.onethatfailstomaximizetotaleconomicwell-being.c.inefficient.d.Alloftheabovearecorrect.ANS:DPTS:1DIF:2REF:15-1TOP:WelfareMSC:Interpretive10.Anaturalmonopolyoccurswhena.theproductissoldinitsnaturalstate(suchaswaterordiamonds).b.thereareeconomiesofscaleovertherelevantrangeofoutput.c.thefirmischaracterizedbyarisingmarginalcostcurve.d.productionrequirestheuseoffreenaturalresources,suchaswaterorair.ANS:BPTS:1DIF:2REF:15-1TOP:NaturalmonopolyMSC:Interpretive11.Anindustryisanaturalmonopolywhen(i)thegovernmentassiststhefirminmaintainingthemonopoly.(ii)asinglefirmownsakeyresource.(iii)asinglefirmcansupplyagoodorservicetoanentiremarketatasmallercostthancouldtwoormorefirms.a.(ii)onlyb.(iii)onlyc.(i)and(ii)d.(ii)and(iii)ANS:BPTS:1DIF:2REF:15-1TOP:NaturalmonopolyMSC:InterpretiveChapter15/Monopoly62312.Whenanaturalmonopolyexists,itisa.alwayscosteffectiveforgovernment-ownedfirmstoproducetheproduct.b.nevercosteffectiveforonefirmtoproducetheproduct.c.alwayscosteffectivefortwoormoreprivatefirmstoproducetheproduct.d.nevercosteffectivefortwoormoreprivatefirmstoproducetheproduct.ANS:DPTS:1DIF:2REF:15-1TOP:NaturalmonopolyMSC:Definitional13.Thedefiningcharacteristicofanaturalmonopolyisa.constantmarginalcostovertherelevantrangeofoutput.b.economiesofscaleovertherelevantrangeofoutput.c.constantreturnstoscaleovertherelevantrangeofoutput.d.diseconomiesofscaleovertherelevantrangeofoutput.ANS:BPTS:1DIF:2REF:15-1TOP:NaturalmonopolyMSC:Definitional14.Naturalmonopoliesdifferfromotherformsofmonopolybecausetheya.arenotsubjecttobarrierstoentry.b.arenotregulatedbygovernment.c.generallydon'tmakeaprofit.d.aregenerallynotworriedaboutcompetitionerodingtheirmonopolypositioninthemarket.ANS:DPTS:1DIF:2REF:15-1TOP:NaturalmonopolyMSC:Interpretive15.Patentandcopyrightlawsaremajorsourcesofa.naturalmonopolies.b.government-createdmonopolies.c.resourcemonopolies.d.antitrustregulation.A