Donna owns the only dog grooming salon on Lonely Island. The figure shows the dog grooming market. Donna is a single-price monopoly that operates on the _______ part of the _______ curve.

inelastic; demand
inelastic; supply
elastic; supply
elastic; demand

Suppose that a monopoly is currently producing the quantity at which marginal revenue exceeds marginal cost. The monopoly can increase its profit by _________________________.

raising its price and decreasing its output
lowering its price and decreasing its output
lowering its price and increasing its output
shutting down

Donna owns the only dog grooming salon on Lonely Island. The figure shows the dog grooming market. Donna is a single-price monopoly that maximizes profit by charging _______ per grooming. Her profit will be _______________.

$20; $0
$17; $160
$30; $80
$10; $50

The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates charges one price to all customers, then the consumer surplus is ________.

$40
$20
$0
$10

The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates charges one price to all customers, its monopoly's gain is ___________ and it creates a deadweight loss of ____________.

$60; $10
$10; $5
$30; $3
$50; $0

Rent seeking __________________________.

increases deadweight loss
increases consumer surplus
occurs only when the firm practices perfect price discrimination
results in a larger output than a competitive industry would produce

Donna owns the only dog grooming salon on Lonely Island. If Donna can price discriminate between dog owners who are seniors and those who are not, her economic profit will be _______ per day.

$50
less than $80
$0
greater than $80

A monopoly can price discriminates between two groups if the two groups have __________.

different marginal costs
large consumer surpluses
the same willingness to pay
different average willingnesses to pay

A perfect price discriminating monopoly produces the same output as a _______________.

perfectly competitive industry but charges lower prices
perfectly competitive firm
single-price monopoly but charges higher prices
perfectly competitive industry

A ________________monopoly is as efficient as a _____________________ if both have the same costs.

single-price; perfectly competitive firm
single-price; perfectly competitive industry
perfect price discriminating; single-price monopoly
perfect price discriminating; perfectly competitive industry

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