1			Under what circumstances will a profit-maximizing monopolist be forced to shut down?
			A)	If the average revenue exceeds the average costs of production
			B)	If the average revenue exceeds the average variable costs of production
			C)	If the average variable costs of production exceeds the average revenue
			D)	If marginal revenue exceeds average revenue
2			How will a monopoly sales tax affect a monopolist’s output?
			A)	It will lead to an increase in the price and a reduction in output.
			B)	It will lead to an increase in price but will have no effect on output.
			C)	It will lead to a reduction in output but will have no effect on price.
			D)	It will have no impact on price or output.

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3			What are the profit-maximizing level of output and price, respectively?
			A)	3 and $35
			B)	4 and $30
			C)	5 and $25
			D)	5 and $30
			E)	6 and $20

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4			What is the level of profits at the profit-maximizing output?
			A)	0
			B)	$7
			C)	$15
			D)	$20
			E)	$120

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5			Suppose this graph depicts a perfectly competitive industry. What will be the equilibrium price and output, respectively?
			A)	$40 and 15
			B)	$40 and 30
			C)	$60 and 20
			D)	$60 and 25
			E)	$70 and 15

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6			Suppose this graph depicts a monopoly industry. What will be the profit-maximizing price and output, respectively?
			A)	$40 and 15
			B)	$40 and 30
			C)	$60 and 20
			D)	$60 and 25
			E)	$70 and 15
7			Which of the following is a correct statement about the socially optimum price?
			A)	It is a price equal to average cost.
			B)	It is a price equal to marginal cost.
			C)	It is a price equal to the lowest average cost.
			D)	It is a price equal to marginal revenue.

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8			Refer to the table above, which contains data for a monopolist, when answering this question. What would be the output and price if this firm was an unregulated, profit-maximizing firm?
			A)	4 and $52
			B)	4 and $64
			C)	5 and $60
			D)	6 and $56
			E)	9 and $44

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9			Refer to the table above, which contains data for a monopolist, when answering this question. What would be the output and price if this firm was regulated and required to charge a fair-return price?
			A)	4 and $52
			B)	4 and $64
			C)	5 and $60
			D)	6 and $56
			E)	9 and $44

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10			Refer to the table above, which contains data for a monopolist, when answering this question. What would be the output and price if this firm was regulated and required to charge a socially optimum price?
			A)	4 and $52
			B)	4 and $64
			C)	5 and $60
			D)	6 and $56
			E)	9 and $44