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10.7: Review Questions

  • Page ID
    215652
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    7.

    How is monopoly different from perfect competition?

    8.

    What is a barrier to entry? Give some examples.

    9.

    What is a natural monopoly?

    10.

    What is a legal monopoly?

    11.

    What is predatory pricing?

    12.

    How is intellectual property different from other property?

    13.

    What legal mechanisms protect intellectual property?

    14.

    In what sense is a natural monopoly “natural”?

    15.

    How is the demand curve perceived by a perfectly competitive firm different from the demand curve perceived by a monopolist?

    16.

    How does the demand curve perceived by a monopolist compare with the market demand curve?

    17.

    Is a monopolist a price taker? Explain briefly.

    18.

    What is the usual shape of a total revenue curve for a monopolist? Why?

    19.

    What is the usual shape of a marginal revenue curve for a monopolist? Why?

    20.

    How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?

    21.

    How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue and marginal costs?

    22.

    When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge?

    23.

    Is a monopolist allocatively efficient? Why or why not?

    24.

    How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive firm?


    This page titled 10.7: Review Questions is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by OpenStax.

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