曼昆《经济学原理》(微观)第五版测试题库_第十五章.pdf

1002 Chapter 15 Monopoly TRUE FALSE 1 Monopolists can achieve any level of profit they desire because they have unlimited market power ANS F DIF 2 REF 15 0 NAT Analytic LOC Monopoly TOP Monopoly MSC Interpretive 2 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 Analytic LOC Monopoly TOP Monopoly MSC Interpretive 3 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 Analytic LOC Monopoly TOP Monopoly MSC Definitional 4 The fundamental cause of monopolies is barriers to entry ANS T DIF 2 REF 15 1 NAT Analytic LOC Monopoly TOP Monopoly MSC Interpretive 5 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 Analytic LOC Monopoly TOP Monopoly MSC Interpretive 6 The De Beers Diamond company is not worried about differentiating its product from all other gemstones ANS F DIF 1 REF 15 1 NAT Analytic LOC Monopoly TOP Monopoly MSC Interpretive 7 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 Analytic LOC Monopoly TOP Monopoly MSC Interpretive 8 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 Analytic LOC Monopoly TOP Monopoly MSC Applicative 9 Copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers ANS T DIF 2 REF 15 1 NAT Analytic LOC Monopoly TOP Patents MSC Interpretive 10 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 Analytic LOC Monopoly TOP Patents MSC Interpretive 11 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 Analytic LOC Monopoly TOP Natural monopoly MSC Applicative 12 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 Analytic LOC Monopoly TOP Natural monopoly MSC Definitional Chapter 15 Monopoly 1003 13 A monopolist maximizes profit by producing an output level where marginal cost equals price ANS F DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 14 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 Analytic LOC Monopoly TOP Profit maximization MSC Applicative 15 Average revenue for a monopoly is the total revenue divided by the quantity produced ANS T DIF 1 REF 15 2 NAT Analytic LOC Monopoly TOP Average revenue MSC Definitional 16 For a monopoly marginal revenue is often greater than the price they charge for their good ANS F DIF 1 REF 15 2 NAT Analytic LOC Monopoly TOP Marginal revenue MSC Interpretive 17 Like competitive firms monopolies choose to produce a quantity in which marginal revenue equals marginal cost ANS T DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 18 Like competitive firms monopolies charge a price equal to marginal cost ANS F DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 19 A monopolist produces where P MC MR ANS T DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 20 A monopolist produces where P MC MR ANS F DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 21 A monopolist does not have a supply curve because the firm s decision about how much to supply is impossible to separate from the demand curve it faces ANS T DIF 2 REF 15 2 NAT Analytic LOC Monopoly TOP Supply curve MSC Interpretive 22 A monopolist s supply curve is vertical ANS F DIF 1 REF 15 2 NAT Analytic LOC Monopoly TOP Supply curve MSC Applicative 23 A monopolist s supply curve is horizontal ANS F DIF 1 REF 15 2 NAT Analytic LOC Monopoly TOP Supply curve MSC Applicative 24 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 Analytic LOC Monopoly TOP Profit maximization MSC Interpretive 25 The socially efficient quantity is found where the demand curve intersects the marginal cost curve ANS T DIF 2 REF 15 3 NAT Analytic LOC Monopoly TOP Deadweight loss MSC Interpretive 26 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 Analytic LOC Monopoly TOP Deadweight loss MSC Interpretive 1004 Chapter 15 Monopoly 27 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 Analytic LOC Monopoly TOP Deadweight loss MSC Interpretive 28 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 Analytic LOC Monopoly TOP Deadweight loss MSC Interpretive 29 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 Analytic LOC Monopoly TOP Deadweight loss MSC Analytical 30 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 Analytic LOC Monopoly TOP Deadweight loss MSC Analytical 31 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 Analytic LOC Monopoly TOP Deadweight loss MSC Analytical 32 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 Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 33 Price discrimination is prohibited by antitrust laws ANS F DIF 2 REF 15 4 NAT Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 34 A monopolist earns higher profits by charging one price than by practicing price discrimination ANS F DIF 3 REF 15 4 NAT Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 35 A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society ANS T DIF 3 REF 15 4 NAT Analytic LOC Monopoly TOP Perfect price discrimination MSC Interpretive 36 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 Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 37 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 Analytic LOC Monopoly TOP Price discrimination MSC Interpretive Chapter 15 Monopoly 1005 38 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 Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 39 University financial aid can be viewed as a type of price discrimination ANS T DIF 1 REF 15 4 NAT Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 40 By offering lower prices to customers who buy a large quantity a monopoly is price discriminating ANS T DIF 1 REF 15 4 NAT Analytic LOC Monopoly TOP Price discrimination MSC Interpretive 41 Goods that do not have close substitutes have downward sloping demand curves ANS T DIF 1 REF 15 4 NAT Analytic LOC Monopoly TOP Demand curve MSC Interpretive 42 If the government regulates the price a natural monopolist can charge to be equal to the firm s average total cost the firm has no incentive to reduce costs ANS T DIF 2 REF 15 5 NAT Analytic LOC Monopoly TOP Regulation MSC Interpretive 43 If the government regulates the price a natural monopolist can charge to be equal to the firm s marginal cost the government will likely need to subsidize the firm ANS T DIF 2 REF 15 5 NAT Analytic LOC Monopoly TOP Regulation MSC Interpretive 44 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 Analytic LOC Monopoly TOP Antitrust MSC Interpretive 45 Some companies merge in order to lower costs through efficient joint production ANS T DIF 1 REF 15 5 NAT Analytic LOC Monopoly TOP Antitrust MSC Interpretive 46 A common solution to monopoly in European countries is public ownership ANS T DIF 1 REF 15 5 NAT Analytic LOC Monopoly TOP Monopoly MSC Interpretive 47 The proper level of government intervention is unclear when dealing with a monopoly ANS T DIF 1 REF 15 5 NAT Analytic LOC Monopoly TOP Regulation MSC Interpretive 48 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 Analytic LOC Monopoly TOP Do nothing MSC Interpretive 49 Government intervention always reduces monopoly deadweight loss ANS F DIF 1 REF 15 5 NAT Analytic LOC Monopoly TOP Do nothing MSC Interpretive 50 Firms with substantial monopoly power are quite common because many goods are truly unique ANS F DIF 1 REF 15 6 NAT Analytic LOC Monopoly TOP Monopoly MSC Interpretive 1006 Chapter 15 Monopoly SHORT ANSWER 1 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 Monopoly TOP Patents Regulation MSC Applicative 2 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 Monopoly TOP Natural monopoly MSC Definitional 3 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 Monopoly TOP Monopoly MSC Analytical 4 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 Monopoly TOP Regulation MSC Analytical 5 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 Monopoly TOP Profit maximization MSC Analytical Chapter 15 Monopoly 1007 6 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 Monopoly TOP Deadweight loss MSC Analytical 7 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 25 DIF 3 REF 15 3 NAT Analytic LOC Monopoly TOP Deadweight loss MSC Applicative 8 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 Monopoly TOP Total revenue MSC Analytical 9 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 Monopoly TOP Price discrimination MSC Analytical 1008 Chapter 15 Monopoly 10 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 Monopoly TOP Government MSC Interpretive 11 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 Monopoly TOP Antitrust MSC Interpretive 12 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 government ownership would benefit society However in most cases government owners operate much like private sector monopolists The political economy of government institutions does not ensure that government owners will pursue socially optimal policy Also governments have no incentive to reduce costs or innovate DIF 3 REF 15 5 NAT Analytic LOC Monopoly TOP Government MSC Analytical 13 Why might economists prefer private ownership of monopolies over public ownership of monopolies ANS The private monopolist is gove