There are 2 general models to consider when discussing treatment of offenders. First is the medical model, which focuses on psychological evaluation and creating a treatment plan that corresponds with the evaluation.

 

The second model is known as the psycho/social/behavioral model. This model uses several methods, including a risk assessment and a thorough treatment prescription process. The psycho/social/behavioral model looks at all aspects of the offender's life.

 

Compare and contrast the medical and psychological/sociological/behavioral models.

 

Assignment Guidelines:

 

  • Using the library, course materials, textbook, and Web resources, research the 2 models of correctional treatment.

    • What are the advantages and disadvantages of the medical model? Explain.

    • What are the advantages and disadvantages of the psycho/social/behavioral model? Explain.

    • How are these 2 models similar?

    • Based on what you have found, which model do you believe is the most appropriate for assessing special-needs offenders?

  • Compile your responses into a PowerPoint presentation of 7–10 slides.

    • Be sure to include speaker notes for each slide.

 

What are the possible gametes produced by the individual SsYy

Elena is a businesswoman who travels to Singapore . She always stays at The Success Hotel, here in Singapore. The hotel has many signs its rooms among which are a sign that reads: “The Management will not be responsible for valuables lost if these are not given to the front desk for safe-keeping.”

 

On her last stay at the hotel, a thief broke into Elena’s room while she was out and stole her phone and laptop. Elena wants to sue the hotel for the loss. The hotel denies responsibility pointing out to the exclusion clause in the room.

 

While waiting to see the hotel manager on the third floor about her claim against the hotel, Elena went to use the toilet on that floor. After she was done, she attempted to open the cubicle door and found herself trapped inside; the door handle had come off making it impossible to open the door. In his frustration, Elena attempted to climb out of the cubicle by standing on the toilet seat and toiled roll holder. The holder gave way and she fell backwards hitting her head. She was given outpatient treatment at a local hospital. Again, Elena intends to sue the hotel for their negligence.

 

Several days later, Elena, in need of another laptop, went to a computer shop in Funan Centre Elena explained to the salesman her exact requirements for both her laptop and the software needed. The salesman, aware that Elena was not an especially technically proficient person, convinced Elena to buy an older version of a laptop as well as the software. Elena has now discovered that not only was she misled into buying older versions of the laptop and software, but that she was highly overcharged. Elena wants to file a complaint with the relevant authorities and have the contract with the computer shop cancelled. The shop has denied liability saying that the salesman acted on his own accord.

 

Elena also bought a cell phone. It was fine for the first week, but now, it is not functioning as it should. It can only make calls but unable to receive any. She brought the cell phone to the shop and asked for an exchange. The salesman refused and advised Elena to send the cell phone for servicing. Elena refuses.

 

Advise Elena on:

 

  1. 1)  Whether Elena can hold the Success Hotel for the loss of her property under the common law.

     

  2. 2)  If Elena can hold the Hotel responsible for the injury she sustained at the Hotel.

     

  3. 3)  The nature of sales transactions governing the sales of goods and the relevant statute Elena can turn to for help in cancelling the contract for the laptop and the cell phone and recovering her money. 

Barriers to entering an industry:

i. result in productive efficiency 

ii. result in allocative efficiency

iii. are the basis for monopolies to exist

iv. apply in the United States to only to industries dominated by a single firm
 
 
 
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Question 22.5 ptsA patent or copyright is a barrier to entry based on:
A patent or copyright is a barrier to entry based on:
 
 
 
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Question 32.5 ptsSkip to question text.
A ‘natural’ monopoly, such as a local electricity provider, is the result of:

i. a firm owning or controlling a key input used in the production process

ii. long-run average total costs declining continuously as output increases

iii. long-run total costs declining continuously as output increases

iv. economies of scale existing over a wide range of output
 
 
 
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Question 42.5 ptsFor a purely competitive firm _______________; and for a uniform-price monopolist _______________ :
For a purely competitive firm _______________; and for a uniform-price monopolist _______________ :
 
 
 
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Question 52.5 ptsIn contrast to firms operating in purely competitive industries, demand curves faced by monopolists are:
In contrast to firms operating in purely competitive industries, demand curves faced by monopolists are:
 
 
 
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Question 62.5 ptsAssuming that the market demand curve does not shift (i.e., there are no changes in the determinants of demand), the monopolist that practices uniform pricing:
Assuming that the market demand curve does not shift (i.e., there are no changes in the determinants of demand), the monopolist that practices uniform pricing:
 
 
 
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Question 72.5 ptsIf a monopolist’s total output increases as the quantity of labor that it employs increases, then the:
If a monopolist’s total output increases as the quantity of labor that it employs increases, then the:
 
 
 
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Question 82.5 ptsLike a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:
Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:
 
 
 
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Question 92.5 ptsThe notion that a firm should produce that level of output such that MR = MC to maximize profit or minimize operating losses applies:
The notion that a firm should produce that level of output such that MR = MC to maximize profit or minimize operating losses applies:
 
 
 
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Question 102.5 ptsFor a monopolist that employs a uniform pricing strategy, marginal revenue is less than price because:
For a monopolist that employs a uniform pricing strategy, marginal revenue is less than price because:
 
 
 
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Question 112.5 ptsIf a monopolist is producing a level of output that maximizes total profit, then it will necessarily be:
If a monopolist is producing a level of output that maximizes total profit, then it will necessarily be:
 
 
 
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Question 122.5 ptsSuppose that a monopolist is producing a level of output such that AVC = $6, AFC = $4, P = $8, MR = $10, and MC = $6. Based on this information, the firm is realizing:
Suppose that a monopolist is producing a level of output such that AVC = $6, AFC = $4, P = $8, MR = $10, and MC = $6. Based on this information, the firm is realizing:
 
 
 
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Question 132.5 ptsIf a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by:
If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by:
 
 
 
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Question 142.5 ptsIf a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:
If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:
 
 
 
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Question 152.5 ptsA profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:
A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:
 
 
 
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Question 162.5 ptsSkip to question text.
Suppose a firm has monopoly power in the production of a particular good. If it finds that revenue and cost conditions are such that at all levels of output the price it can charge in order to sell all of the units is less than the average variable costs then it is in the firm’s best interest to:
 
 
 
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Question 172.5 ptsSimilar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
 
 
 
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Question 182.5 ptsSkip to question text.
Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its: 

i. total revenue is equal to total variable cost 

ii. total revenue is equal to total cost

iii. average revenue is equal to average variable cost

iv. average revenue is equal to average total cost
 
 
 
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Question 192.5 ptsSkip to question text.
Suppose that at 200 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $5 per unit and is incurring average variable costs of $3 per unit and average total costs of $4 per unit. On the basis of this information we can conclude that the firm:
 
 
 
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Question 202.5 ptsSuppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. Therefore:
Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. Therefore:
 
 
 
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Question 212.5 ptsSuppose that at 500 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at $6 per unit and average total cost at 500 units of output is $5. On the basis of this information we:
Suppose that at 500 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at $6 per unit and average total cost at 500 units of output is $5. On the basis of this information we:
 
 
 
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Question 222.5 ptsIf the uniform price of a monopolist’s good is $50 per unit and its marginal cost is $25, then:
If the uniform price of a monopolist’s good is $50 per unit and its marginal cost is $25, then:
 
 
 
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Question 232.5 ptsConsider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:
Consider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:
 
 
 
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Question 242.5 ptsSkip to question text.
Suppose that at 100 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $8 per unit and is incurring average variable costs of $5 per unit and average fixed costs of $4 per unit. On the basis of this information we can conclude that the firm is:
 
 
 
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Question 252.5 ptsUnder which of the following situations would a monopolist increase profits by reducing output and raising price:
Under which of the following situations would a monopolist increase profits by reducing output and raising price:
 
 
 
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Question 262.5 ptsThe uniform price that is most profitable for the monopolist to charge for its product is:
The uniform price that is most profitable for the monopolist to charge for its product is:
 
 
 
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Question 272.5 ptsUnder uniform pricing, a profit maximizing monopolist’s price is:
Under uniform pricing, a profit maximizing monopolist’s price is:
 
 
 
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Question 282.5 ptsSkip to question text.
If a public utilities regulatory agency requires a local electricity provider (a natural monopoly) to set the price of its output equal to marginal cost and this price is below its average total cost then:

i. the firm will realize an economic profit

ii. the firm will break even

iii. there will be no deadweight loss

iv. the firm will suffer a loss
 
 
 
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Question 292.5 ptsSkip to question text.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Qand whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firm’s good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then the firm will:
 
 
 
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Question 302.5 ptsSkip to question text.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Qand whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firm’s good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then the price elasticity of demand (ED) at the profit maximizing price is equal to:
 
 
 
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Question 312.5 ptsSkip to question text.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Qand whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firm’s good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then rounded to the nearest dollar the deadweight loss that results is:
 
 
 
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Question 322.5 ptsPrice discrimination is the practice of:
Price discrimination is the practice of:
 
 
 
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Question 332.5 ptsSkip to question text.
The ability of a firm to increase profits by practicing discriminatory pricing can be undermined by:

i. arbitrage

ii. the market in which it operates being highly competitive

iii. differences in the price elasticity of demand between groups of consumers

iv. the firm having considerable market share
 
 
 
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Question 342.5 ptsPrice discrimination is a rational strategy for a profit-maximizing firm to adopt when:
Price discrimination is a rational strategy for a profit-maximizing firm to adopt when:
 
 
 
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Question 352.5 ptsThe act of purchasing a good at a low price and reselling it at a higher price is referred to as:
The act of purchasing a good at a low price and reselling it at a higher price is referred to as:
 
 
 
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Question 362.5 ptsSkip to question text.
Children are often charged less than adults for admission to movies, theme parks, and professional sporting events. However, they are charged the same prices as adults at the concession stands. Which of the following best explains such pricing arrangements:
 
 
 
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Question 372.5 ptsIf a monopolist engages in perfect (first-degree) price discrimination, then relative to uniform pricing:
If a monopolist engages in perfect (first-degree) price discrimination, then relative to uniform pricing:
 
 
 
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Question 382.5 ptsWith perfect (first-degree) price discrimination there is:
With perfect (first-degree) price discrimination there is:
 
 
 
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Question 392.5 ptsA perfectly competitive firm is not able to successfully price discriminate because:
A perfectly competitive firm is not able to successfully price discriminate because:
 
 
 
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Question 402.5 ptsSkip to question text.
De Beers, the South African diamond syndicate, has historically had monopoly power in the global diamond market. One source of competition that it confronts comes from individuals who sell diamonds that originated through previous sales by De Beers. Which of the following best explains why these secondary sales might be of concern to De Beers?
 
 
 
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Question 412.5 ptsSkip to question text.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Qand whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firm’s good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm is able to practice first degree (or perfect) price discrimination then it will:

Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:



a. total fixed costs

b. marginal costs

c. total variable costs

d. total costs





Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its: 

i. total revenue is equal to total variable cost 

ii. total revenue is equal to total cost

iii. average revenue is equal to average variable cost

iv. average revenue is equal to average total cost

a. i

b. ii

c. iii

d. i and iii

e. ii and iv





Suppose that at 200 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $5 per unit and is incurring average variable costs of $3 per unit and average total costs of $4 per unit. On the basis of this information we can conclude that the firm:

a. is operating at maximum profit by producing the 200 units of output

b. should increase its use of variables inputs in order to reduce its total variable costs TVC

c. is operating at a loss that is less than the loss incurred by shutting down

d. should close down



Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. Therefore:

a. demand is elastic at this price

b. demand is inelastic at this price

c. the firm is maximizing profits

d. total revenue is at a maximum



Suppose that at 500 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at $6 per unit and average total cost at 500 units of output is $5. On the basis of this information we:

a. can say that the firm should close down in the short run

b. can say that the firm is maximizing profit in the short run

c. cannot determine whether the firm should produce or shut down in the short run

d. can assume the firm is not using the most efficient technology





If the uniform price of a monopolists good is $50 per unit and its marginal cost is $25, then:

a. to maximize profit the firm should increase output

b. to maximize profit the firm should decrease output

c. to maximize profit the firm should continue to produce the output it is producing

d. there is not enough information to determine whether output should be changed or remain constant to maximize profit





Consider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:

a. raise total revenue by raising price

b. reduce total costs by raising price

c. raise profits by raising price

d. all of the above



Suppose that at 100 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $8 per unit and is incurring average variable costs of $5 per unit and average fixed costs of $4 per unit. On the basis of this information we can conclude that the firm is:

a. operating at maximum profit by producing the 100 units of output

b. operating at a loss that could be reduced by shutting down

c. operating at a profit that could be increased by producing more output

d. operating at a loss that is less than the loss incurred by shutting down





Under which of the following situations would a monopolist increase profits by reducing output and raising price:

a. if it were producing where MC < MR

b. if it were producing where MC > MR

c. if it were producing where MC = MR

d. none of the above



The uniform price that is most profitable for the monopolist to charge for its product is:

a. the highest price a consumer is willing to pay for a unit of the good

b. the price at which demand is unit-elastic

c. a price that maximizes the quantity sold

d. the price for which marginal revenue equals marginal cost





Under uniform pricing, a profit maximizing monopolists price is:

a. the same as the price that would prevail if the industry were perfectly competitive

b. less than the price that would prevail if the industry were perfectly competitive

c. greater than the price that would prevail if the industry were perfectly competitive

d. none of the above





If a public utilities regulatory agency requires a local electricity provider (a natural monopoly) to set the price of its output equal to marginal cost and this price is below its average total cost then:

i. the firm will realize an economic profit

ii. the firm will break even

iii. there will be no deadweight loss

iv. the firm will suffer a loss

a. i

b. ii

c. iii

d. iii and iv





Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then the firm will:

a. produce 90 units of output, charge a price of $102, and earn a profit of $9180

b. produce 90 units of output, charge a price of $102, and earn a profit of $7460

c. produce 110 units of output, charge a price of $98, and earn a profit of $6030

d. produce 110 units of output, charge a price of $98, and earn a profit of $10780



Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then the price elasticity of demand (ED) at the profit maximizing price is equal to:

a. 0.2

b. 0.9

c. 3.6

d. 4.5

e. 5.2



Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then rounded to the nearest dollar the deadweight loss that results is:

a. $76

b. $108

c. $303

d. $458



Price discrimination is the practice of:

a. charging different prices for the same good and the price differences are not due to differences in cost

b. charging different prices for the same good and the price differences arise because of differences in cost

c. charging different prices for high quality versus low quality units of a good

d. charging higher prices for brand named goods and lower prices for generic versions of the goods







The ability of a firm to increase profits by practicing discriminatory pricing can be undermined by:

i. arbitrage

ii. the market in which it operates being highly competitive

iii. differences in the price elasticity of demand between groups of consumers

iv. the firm having considerable market share

a. i

b. ii

c. iii

d. i and ii

e. i and iii



Price discrimination is a rational strategy for a profit-maximizing firm to adopt when:

a. it is possible to engage in arbitrage across market segments

b. it is not possible to segment consumers into identifiable markets

c. there is no opportunity for arbitrage across market segments

d. firms want to increase the amount of consumer surplus received by its customers



The act of purchasing a good at a low price and reselling it at a higher price is referred to as:

a. odd pricing

b. arbitrage

c. two-part pricing

d. price discrimination



Children are often charged less than adults for admission to movies, theme parks, and professional sporting events. However, they are charged the same prices as adults at the concession stands. Which of the following best explains such pricing arrangements:

a. children have an elastic demand for admission but an inelastic demand for items at the concession stands

b. children have an inelastic demand for admission but an elastic demand for items at the concession stands

c. sellers can prevent adults from being admitted with a childs ticket but cannot prevent children from buying concession items for adults

d. children can personally use only a single ticket for admission, but can personally consume more than one concession item



If a monopolist engages in perfect (first-degree) price discrimination, then relative to uniform pricing:

a. profits will increase and output will fall

b. both profits and output will increase

c. both profits and output will decrease

d. its demand curve will lie below its marginal revenue curve



With perfect (first-degree) price discrimination there is:

a. no deadweight loss

b. no producer surplus

c. one single price

d. an increase in consumer surplus





A perfectly competitive firm is not able to successfully price discriminate because:

a. it breaks even in the long run and therefore can not afford to engage in yield management

b. it does not advertise and this prevents it from marketing its product to different segments of the market

c. consumers in perfectly competitive markets have the same maximum willingness to pay for units of the good

d. the firm will not be able to sell units to any group of consumers that are confronted with prices above the market price





De Beers, the South African diamond syndicate, has historically had monopoly power in the global diamond market. One source of competition that it confronts comes from individuals who sell diamonds that originated through previous sales by De Beers. Which of the following best explains why these secondary sales might be of concern to De Beers?

a. previously owned diamonds are a close substitute for newly mined diamonds and therefore secondary sales would reduce its market power

b. it will not be able to guarantee the quality of previously owned diamonds and fears that its reputation might be harmed

c. the availability of previously owned diamonds would increase the market demand for diamonds and reduce its market power

d. the availability of previously owned diamonds would make the market demand curve for diamonds more inelastic and force the firm to lower its price



Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm is able to practice first degree (or perfect) price discrimination then it will:

a. produce 122.5 units of output and rounded to the nearest dollar it will earn a profit of $5952

b. produce 122.5 units of output and rounded to the nearest dollar it will earn a profit of $6112

c. produce 137.5 units of output and rounded to the nearest dollar it will earn a profit of $7543

d. produce 137.5 units of output and rounded to the nearest dollar it will earn a profit of $5652





Barriers to entering an industry:

i. result in productive efficiency 

ii. result in allocative efficiency

iii. are the basis for monopolies to exist

iv. apply in the United States to only to industries dominated by a single firm





a. i

b. ii

c. iii

d. iv

e. both iii and iv





A natural monopoly, such as a local electricity provider, is the result of:

i. a firm owning or controlling a key input used in the production process

ii. long-run average total costs declining continuously as output increases

iii. long-run total costs declining continuously as output increases

iv. economies of scale existing over a wide range of output





a. i

b. ii

c. iii

d. iv

e. ii and iv

f. iii and iv



Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:

a. marginal product function

b. average product function

c. marginal cost function

d.average variable cost function

e. average total cost function





The notion that a firm should produce that level of output such that MR = MC to maximize profit or minimize operating losses applies:





a. in both competitive and monopolistic industries

b. only to monopolies

c. only if the firm is a "price taker"

d. only to firms that can price discriminate



For a monopolist that employs a uniform pricing strategy, marginal revenue is less than price because:



a. the monopolists demand curve is perfectly inelastic

b. the monopolists demand curve is perfectly elastic

c. if the monopolist charges a lower price versus a higher price, the lower price applies to all units of output sold

d. the monopolists total revenue curve is linear and upward sloping





If a monopolist is producing a level of output that maximizes total profit, then it will necessarily be:

a. minimizing total cost

b. maximizing profit per unit of output

c. maximizing total revenue

d. maximizing the difference between total revenue and total cost



Suppose that a monopolist is producing a level of output such that AVC = $6, AFC = $4, P = $8, MR = $10, and MC = $6. Based on this information, the firm is realizing:



a. a loss which could be reduced by reducing price and increasing output

b. a profit which could be increased by reducing price and increasing output

c. a loss which could be reduced by increasing price and reducing output

d. a profit which could be increased by increasing price and reducing output



If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by:

a. reducing price and increasing output

b. increasing price and reducing output

c. reducing both price and output

d. increasing both price and output

e. raising price while keeping output unchanged



If a monopolist is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:

a. marginal revenue and marginal cost

b. total revenue and total cost

c. price and minimum average variable cost

d. total revenue and total fixed cost



A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:

a. as far above average total cost (ATC) as possible

b. along the elastic portion of its demand curve

c. along the inelastic portion of its demand curve

d. at the minimum of it average total cost (ATC) curve

e. where the marginal cost (MC) curve intersects the demand curve



Suppose a firm has monopoly power in the production of a particular good. If it finds that revenue and cost conditions are such that at all levels of output the price it can charge in order to sell all of the units is less than the average variable costs then it is in the firms best interest to:

a. close down because its operating losses will exceed its shut-down losses at all levels of output

b. maximize profits by producing where MR = MC

c. close down because its total operating cost will exceed its total revenue

d. minimize losses by producing where MR = MC

Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:



a. total fixed costs

b. marginal costs

c. total variable costs

d. total costs





Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its: 

i. total revenue is equal to total variable cost 

ii. total revenue is equal to total cost

iii. average revenue is equal to average variable cost

iv. average revenue is equal to average total cost

a. i

b. ii

c. iii

d. i and iii

e. ii and iv





Suppose that at 200 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $5 per unit and is incurring average variable costs of $3 per unit and average total costs of $4 per unit. On the basis of this information we can conclude that the firm:

a. is operating at maximum profit by producing the 200 units of output

b. should increase its use of variables inputs in order to reduce its total variable costs TVC

c. is operating at a loss that is less than the loss incurred by shutting down

d. should close down



Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. Therefore:

a. demand is elastic at this price

b. demand is inelastic at this price

c. the firm is maximizing profits

d. total revenue is at a maximum



Suppose that at 500 units of output a monopolist is producing such that marginal revenue is equal to marginal cost. The firm is selling its output at $6 per unit and average total cost at 500 units of output is $5. On the basis of this information we:

a. can say that the firm should close down in the short run

b. can say that the firm is maximizing profit in the short run

c. cannot determine whether the firm should produce or shut down in the short run

d. can assume the firm is not using the most efficient technology





If the uniform price of a monopolists good is $50 per unit and its marginal cost is $25, then:

a. to maximize profit the firm should increase output

b. to maximize profit the firm should decrease output

c. to maximize profit the firm should continue to produce the output it is producing

d. there is not enough information to determine whether output should be changed or remain constant to maximize profit





Consider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:

a. raise total revenue by raising price

b. reduce total costs by raising price

c. raise profits by raising price

d. all of the above