Monopoly (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What key characteristic distinguishes a monopolist from a firm in perfect competition?
What key characteristic distinguishes a monopolist from a firm in perfect competition?
Monopolist is a price maker
For a monopolist with a straight-line demand curve, what is the relationship between MR and AR?
For a monopolist with a straight-line demand curve, what is the relationship between MR and AR?
MR has same intercept, twice AR's slope
At what output level does a profit-maximising monopolist produce?
At what output level does a profit-maximising monopolist produce?
Where
In which portion of the demand curve does a profit-maximising monopolist always produce?
In which portion of the demand curve does a profit-maximising monopolist always produce?
Elastic portion where MR is positive
Why can monopolists earn supernormal profits in the long run?
Why can monopolists earn supernormal profits in the long run?
Barriers to entry prevent competition
What characterises a natural monopoly?
What characterises a natural monopoly?
High fixed costs, low marginal costs
Does a monopolist achieve allocative efficiency?
Does a monopolist achieve allocative efficiency?
No, because
What three conditions are necessary for price discrimination? (Remember MIP)
What three conditions are necessary for price discrimination? (Remember MIP)
Market power, Info, Prevention of resale
In third-degree price discrimination, which group faces the higher price?
In third-degree price discrimination, which group faces the higher price?
Group with less elastic demand
Compared to perfect competition, what does monopoly produce?
Compared to perfect competition, what does monopoly produce?
Less output at higher price