1			Which of the following is a characteristic of a monopoly?
			A)	There are many close substitutes
			B)	There is only one seller in the market
			C)	There are no barriers to entry and exit
			D)	None of the above
2			An imperfectly competitive firm faces:
			A)	A downward sloping demand curve
			B)	An upward sloping demand curve
			C)	A perfectly elastic demand curve
			D)	A perfectly inelastic demand curve
3			Which of the following sources of market power is/are the most enduring? Exclusive control over inputs Natural monopolies Patents and copyrights Network economies Government licenses
			A)	1 and 2 only
			B)	1, 2 and 3 only
			C)	2 and 4 only
			D)	All the sources of market power are enduring
4			For a monopolist, producing and selling one more unit results in a/an:
			A)	Higher profit indefinitely
			B)	Higher total revenue indefinitely
			C)	Increase in market price
			D)	Reduction in marginal revenue by more than the price
5			Which of the following is true about a monopolist's marginal revenue and demand curves?
			A)	The marginal revenue curve has twice the intercept of the demand curve
			B)	The demand curve has twice the intercept of the marginal revenue curve
			C)	The marginal revenue curve has twice the slope of the demand curve
			D)	The demand curve has twice the slope of the marginal revenue curve

Use the following graph to answer questions 6 to 10:

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6			Following the graph above, what is the monopolist's profit maximizing output?
			A)	16
			B)	18
			C)	20
			D)	22
7			Following the graph above, the monopolist will charge a price of:
			A)	$4
			B)	$6
			C)	$9
			D)	$11
8			Following the graph above, the monopolist will make a profit of:
			A)	$60
			B)	$80
			C)	$100
			D)	$176
9			Had the firm been in a perfectly competitive market with P = MR = $9, what will the profit maximizing quantity be?
			A)	16
			B)	18
			C)	20
			D)	22
10			As a result of the firm being a monopoly, the dead weight loss amounts to:
			A)	10
			B)	14
			C)	20
			D)	28
11			A monopolist that perfectly price discriminates:
			A)	Charges each customer his or her reservation price
			B)	Charges all customers the same price
			C)	Produces the monopolist's profit maximizing output
			D)	Provides customers with some consumer surplus
12			A monopolist that charges a different price in two different countries is using:
			A)	Perfect price discrimination
			B)	Hurdle method of price discrimination
			C)	No price discrimination
			D)	None of the above

Use the information below to answer questions 13 to 15:

A cheese producer sells cheese to two countries that have restricted trade. Cheese can be produced at a constant marginal cost of $10. The demand for cheese for countries A and B are given by the following equations:

13			Why is the cheese producer able to price discriminate?
			A)	Because country A and country B have restricted trade
			B)	Because countries A and B have different demand curves
			C)	Because marginal cost is constant
			D)	None of the above
14			What price will the cheese producer charge country A?
			A)	10
			B)	15
			C)	20
			D)	160
15			What price will the cheese producer charge country B?
			A)	10
			B)	15
			C)	20
			D)	80