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    Quiz 1

    Uploaded by

    Shakshi Sharma
    The document is a quiz with 10 multiple choice questions about economics topics such as monopoly, consumer surplus, marginal product, and costs. The questions assess understanding of key concepts like deadweight loss, price discrimination, marginal cost, and the differences between perfect competition and monopoly.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Quiz 1

    Uploaded by

    Shakshi Sharma
    47 views3 pages
    The document is a quiz with 10 multiple choice questions about economics topics such as monopoly, consumer surplus, marginal product, and costs. The questions assess understanding of key concepts like deadweight loss, price discrimination, marginal cost, and the differences between perfect competition and monopoly.

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    mm quiz

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    The document is a quiz with 10 multiple choice questions about economics topics such as monopoly, consumer surplus, marginal product, and costs. The questions assess understanding of key concepts like deadweight loss, price discrimination, marginal cost, and the differences between perfect competition and monopoly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    47 views3 pages

    Quiz 1

    Uploaded by

    Shakshi Sharma
    The document is a quiz with 10 multiple choice questions about economics topics such as monopoly, consumer surplus, marginal product, and costs. The questions assess understanding of key concepts like deadweight loss, price discrimination, marginal cost, and the differences between perfect competition and monopoly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Quiz 1

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    Points:
    9/10
    1
    Consider a profit-maximizing monopoly pricing under the following
    conditions. The profit-maximizing quantity is 40 units, the profit-maximizing
    price is $160, and the marginal cost of the 40th unit is $120.  If the good were
    produced in a perfectly competitive market, the equilibrium quantity would be
    50, and the equilibrium price would be $150.  The demand curve and marginal
    cost curves are linear. What is the value of the deadweight loss created by the
    monopolist?
    (1/1 Point)
    $40
    $100
    $200
    $400
    2
    Suppose most people regard emeralds, rubies, and sapphires as close
    substitutes for diamonds. Then DeBeers, a large diamond company, has
    (1/1 Point)
    less incentive to advertise than it would otherwise have
    less market power than it would otherwise have
    more control over the price of diamonds than it would otherwise have
    higher profits than it would otherwise have
    3
    Consumers' willingness to pay for a good minus the amount they actually pay
    for it equals
    (1/1 Point)
    consumer surplus
    Consumer benefit
    Price discriminant
    Dead Weight loss
    4
    The economic inefficiency of a monopolist can be measured by the
    (1/1 Point)
    number of consumers who are unable to purchase the product because of its high price
    excess profit generated by monopoly firms.
    poor quality of service offered by monopoly firms.
    Dead weight loss
    5
    With no price discrimination, the monopolist sells every unit at the same price.
    Therefore
    (0/1 Point)
    marginal revenue is equal to price
    marginal revenue is equal to average revenue
    price is greater than marginal revenue
    Both a and b are correct
    6
    One difference between a perfectly competitive firm and a monopoly is that a
    perfectly competitive firm produces where
    (1/1 Point)
    marginal cost equals price, while a monopolist produces where price exceeds marginal cost
    marginal cost equals price, while a monopolist produces where marginal cost exceeds price
    price exceeds marginal cost, while a monopolist produces where marginal cost equals price
    marginal cost exceeds price, while a monopolist produces where marginal cost equals price
    7
    Jane was a partner at a law firm earning $223,000 per year. She left the firm to
    open her own law practice. In the first year of business she generated
    revenues of $347,000 and incurred explicit costs of $163,000. Jane’s economic
    profit from her first year in her own practice is
    (1/1 Point)
    -$39,000.
    $124,000
    $163,000
    $184,000
    8
    Suppose a firm currently produces 225 units of output per day with 15
    workers. The firm is able to produce 235 units of output with a 16th worker.
    What is the marginal product of the 16th worker?
    (1/1 Point)
    10 units of output
    15 units of output
    16 units of output
    25 units of output
    9

    From the below diagram, the efficient scale of production occurs at which
    quantity?

    (1/1 Point)
    A
    B
    C
    D
    10
    For a large firm that produces and sells automobiles, which of the following
    costs would be a variable cost?
    (1/1 Point)
    the $20 million payment that the firm pays each year for accounting services
    the cost of the steel that is used in producing automobiles
    the rent that the firm pays for office space in a suburb of St. Louis
    All of the above are correct

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