Tackle the Test: Multiple-Choice Questions

1. Question

   The monopolist’s profit-maximizing output is

   A.

   0.

   B.

   4.

   C.

   5.

   D.

   8.

   E.

   10.

   The monopolist’s profi

2. Question

   The monopolist’s total revenue equals

   A.

   $80.

   B.

   $160.

   C.

   $240.

   D.

   $300.

   E.

   $480.

   The monopolist’s total revenue equals

3. Question

   The monopolist’s total cost equals

   A.

   $20.

   B.

   $80.

   C.

   $160.

   D.

   $240.

   E.

   $480.

   The monopolist’s total cost equals

4. Question

   The monopolist is earning a profit equal to

   A.

   $0.

   B.

   $40.

   C.

   $80.

   D.

   $160.

   E.

   $240.

   The monopolist is earning a profit equal to

5. Question

   How does a monopoly differ from a perfectly competitive industry with the same costs?

   
   

   
   

   1. It produces a smaller quantity.

      
      
   
   

   2. It charges a higher price.

      
      
   
   

   3. It earns normal profit in the long run.

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   How does a monopoly differ from a perfectly competitive industry with the same costs?