Monopoly
About the Lecture
The lecture Monopoly by James DeNicco is from the course Principles of Microeconomics (EN). It contains the following chapters:
- Entry Barriers in a Monopoly
- A Monopoly's Revenue
- A Monopoly's Profit
- The Welfare Costs of a Monopoly
- A Closer Look at Price Discrimination
- Recap
Included Quiz Questions
A firm is a natural monopoly if it exhibits the following as its output increases:
- decreasing average total cost.
- increasing average total cost.
- decreasing marginal revenue.
- increasing marginal cost.
Which of the following statements is true about revenue when a monopoly increases the quantity it produces?
- The output effect tends to increase revenue and the price effect tends to decrease revenue.
- Both the output effect and the price effect tend to decrease revenue.
- Both the output effect and the price effect tend to increase revenue.
- The output effect tends to decrease revenue and the price effect tends to increase revenue.
For a monopoly in the short run _______________, and in the long run _______________.
- price > average total cost ; price > average total cost
- price > average total cost ; price = average total cost
- price = average total cost ; price > average total cost
- price = average total cost ; price = average total cost
Which of the following is NOT true about price discrimination?
- It allows different prices for different customers, decreasing the quantity sold, which decreases the deadweight loss.
- Price discrimination requires the ability to distinguish customers willingness to pay.
- Price discrimination can raise economic welfare.
- Price discrimination is a rational strategy for a profit maximizing monopolist.
Author of lecture Monopoly
James DeNicco
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