曼昆《经济学原理》微观第五版测试题库15

1002Chapter 15MonopolyTRUE/FALSE1. Monopolists can achieve any level of profit they desire because they have unlimited market power.ANS: F DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive2. Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.ANS: T DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive3. One characteristic of a monopoly market is that the product is virtually identical to products produced by competing firms.ANS: F DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Definitional4. The fundamental cause of monopolies is barriers to entry.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: 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 degree.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive6. The De Beers Diamond company is not worried about differentiating its product from all other gemstones.ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive7. The amount of power that a monopoly has depends on whether there are close substitutes for its product.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: 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 from a barrier to entry.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Applicative9. Copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive10. If the government deems a newly invented drug to be truly original, the pharmaceutical company is given the exclusive right to manufacture and sell the drug for 50 years.ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive11. A natural monopoly has economies of scale for most if not all of its range of output.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: Applicative12. Declining average total cost with increased production is one of the defining characteristics of a natural monopoly.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: DefinitionalChapter 15/Monopoly 100313. A monopolist maximizes profit by producing an output level where marginal cost equals price.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: 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 DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Applicative15. Average revenue for a monopoly is the total revenue divided by the quantity produced.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Average revenue MSC: Definitional16. For a monopoly, marginal revenue is often greater than the price they charge for their good.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Marginal revenue MSC: Interpretive17. Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive18. Like competitive firms, monopolies charge a price equal to marginal cost.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive19. A monopolist produces where P MC = MR.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive20. A monopolist produces where P = MC = MR.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: 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: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Interpretive22. A monopolists supply curve is vertical.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative23. A monopolists supply curve is horizontal.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative24. During the life of a drug patent, the monopoly pharmaceutical firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive25. The socially efficient quantity is found where the demand curve intersects the marginal cost curve.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive26. The deadweight loss for a monopolist equals one-half of its profits for any given level of output.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive1004 Chapter 15/Monopoly27. A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive28. A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: 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 marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $4,000.ANS: F DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical30. 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 marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: 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-sloping straight lines. The monopoly deadweight loss equals $1,500.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: 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: T DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive33. Price discrimination is prohibited by antitrust laws.ANS: F DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive34. A monopolist earns higher profits by charging one price than by practicing price discrimination.ANS: F DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive35. A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.ANS: T DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Perfect price discrimination MSC: Interpretive36. By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers, the publisher is able to price discriminate and raise its profits.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive37. Movie theatres charge different prices to different groups of people based on the differing marginal costs that exist from group to group.ANS: F DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: InterpretiveChapter 15/Monopoly 100538. Airlines often separate their customers into business travelers and personal travelers by giving a discount to those travelers who stay over a Saturday night.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive39. University financial aid can be viewed as a type of price discrimination.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive40. By offering lower prices to customers who buy a large quantity, a monopoly is price discriminating.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive41. Goods that do not have close substitutes have downward-sloping demand curves.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Demand curve MSC: Interpretive42. If the government 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: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive43. If the government regulates the price a natural monopolist can charge to be equal to the firms marginal cost, the government will likely need to subsidize the firm.ANS: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive44. Antitrust laws give the Justice Department the authority to challenge potential mergers between companies in an effort to safeguard society from monopoly power.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive45. Some companies merge in order to lower costs through efficient joint production.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive46. A common solution to monopoly in European countries is public ownership.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive47. The proper level of government intervention is unclear when dealing with a monopoly.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive48. The government may choose to do nothing to reduce monopoly inefficiency because the “fix” may be worse than the problem.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive49. Government intervention always reduces monopoly deadweight loss.ANS: F DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive50. Firms with substantial monopoly power are quite common because many goods are truly unique.ANS: F DIF: 1 REF: 15-6 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive1006 Chapter 15/MonopolySHORT ANSWER1. Describe how government is involved in creating a monopoly. Why might the government create one? Give an example.ANS:The government can create 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 include 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: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Patents | Regulation MSC: 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 or more firms. The example in the text is a bridge.DIF: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Natural monopoly MSC: 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 firms 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 “home 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: 3 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Monopoly MSC: 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 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 industry 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: 2 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Regulation MSC: Analytical5. Explain how a profit-maximizing monopolist chooses its 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 competitive firm, for which price equals marginal cost.DIF: 2 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Profit maximization MSC: AnalyticalChapter 15/Monopoly 10076. 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 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: 2 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Analytical7. What is the deadweight loss due to profit-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 demand curve is linear and downward sloping, and the marginal cost curve is constant.ANS:1/2*(110-100)*($10-$5) = $25DIF: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Applicative8. Assume that a monopolist decides to maximize revenue rather than profit. How does this operating objective change 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 the 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: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Total revenue MSC: Analytical9. One example 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 strategy.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, price discrimination can raise economic welfare.DIF: 2 REF: 15-4 NAT: Analytic LOC: MonopolyTOP: Price discrimination MSC: Analytical1008 Chapter 15/Monopoly10. 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 using 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: 2 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Government MSC: Interpretive11. 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: 2 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Antitrust MSC: Interpretive12. 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 interest of society“ is promoted in these markets? Explain your answer.ANS:As long as the government “owner“ pursues a production and pricing policy that approaches a competitive outcome, social well-being can be enhanced. In this case the governm