Monopoly Equilibrium and Price Discrimination: AP Microeconomics Online Test

Due to the incidence of a per unit tax, the Monopolist’s:
Only the Short run Average Variable Cost Curve shifts up as the Per unit tax is a Fixed Cost.
Only the Short run Average Cost Curve shifts up as the Per unit tax is a Variable Cost.
The Short run Average Cost Curve and the Short run Marginal Costs Curve shift up as the Per unit tax is a Fixed Cost.
The Short run Average Cost Curve and the Short run Marginal Costs Curve shift up as the Per unit tax is a Variable Cost.
None of the above
If in the Short-run the Monopolist firm incurs losses, then in the Long run:
The firm will bear losses
The firm will Shut Down
The firm will earn Profits
The firm will Break Even
Any of the above
When the seller of the Monopoly firm charges different prices from the same buyer, the Degree of Price Discrimination is:
Zero degree
First degree
Second degree
Third degree
None of the Above
Price Discrimination can be practiced by a Monopoly firm when:
The Monopolist sells an identical commodity at different prices
The Monopolist sells two or more similar products at prices which are not proportional to their Marginal Costs.
For Price Discrimination to be practiced, the product sold by the Monopoly firm can be differentiated in terms of utility, appearance or time.
The consumer does not have perfect knowledge of the prices being charged from other consumers.
All of the above
In Price Discrimination, the Monopolist distributes the Total Output among the two markets in a way that:
Marginal Revenue earned in both the markets is the same
Marginal Revenue earned in both the markets is Maximum
Marginal Revenue earned in both the markets is minimum
Marginal Revenue earned in the market with higher Elasticity of Demand is greater than Marginal Revenue earned in the market with lower Elasticity of Demand
Marginal Revenue earned in the market with lower Elasticity of Demand is greater than Marginal Revenue earned in the market with lower Elasticity of Demand
For the consumer, the most favourable form of Monopoly regulation is: I) Price control II) Per unit tax III) Lump sum tax
I only
II only
III only
I and II both
I, II and III
Under Price Discrimination of Third degree, the Monopolist divides the product in two or more sub-markets and charges:
The highest demand price of the sub-market
The lowest demand price of the sub-market
The demand price of the largest sub-market
The demand price of the smallest sub-market
A price determined by the demand conditions in the sub-market
At the point of the Long run Equilibrium under Monopoly, the capacity of the Monopolist firm is: I) under-utilized II) over-utilized III) at the optimal level
I only
II only
III only
I or II
Any of the three
When the Monopolist practices Price Discrimination, the Consumer’s Surplus left with the consumer is:
Zero
Maximum
Minimum
More than the monopolist’s output
None of the above
Under a Monopoly with Price Discrimination, the equilibrium is reached when: I) The monopolist can profitably sell the output in two or more than two markets. II) The monopolist earns the same marginal revenue in different markets. III) The Marginal Revenue earned from the markets must at least be equal to Marginal Cost of producing the aggregate output.
I only
II only
III only
I and II
I, II and III
Description:

Take this short test on the basics of the Monopoly Market Structure, Equilibrium position in the Monopoly Market and Price Discrimination. Take this 7-minute short test and revise concepts like Degrees of Monopoly Price Discrimination, Equilibrium Price and Output for the Monopolist, Long run and Short run Equilibrium. You’ll find Multiple Choice questions on all these concepts.

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