Question

A single price monopoly charges:

Question 1 options:

	every customer the exact same price.
	single people less than married people.
	a different price to each and every customer.

Which of the following is true about monopoly?

Question 2 options:

	there are many firms in the market.
	there are no close substitutes for the monopolists' good/service.
	there is free entry/exit in the short and long-run.
	there are no barriers to entry, in the long-run.

What does a single price monopoly have to do to increase its quantity sold?

Question 3 options:

	lower its price.
	keep its price exactly the same.
	raise its price.

A monopolist can sell 10 units at $4 per unit, or 11 units at $3 per unit. The marginal revenue of the 11th unit is:

Question 4 options:

	$7
	$4
	-$7
	$3

Answer 1

Q1. Every customer the exact same price

Q2.there are no close substitutes of monopolist's good/service.

Q3.lower its price.

Q4. $3

Explaination :

According to characteristic of monopoly, monopolist's are price maker, high barriers to entry, single seller and price discrimination.

Q1. Singke charge monopoly charges same price to all the customers.

Q2.as we see in characteristic of monopoly, they are single seller so there are no close substitutes to the good or service monopoply provide.

Q3.monopoly can lower its price to raise the demand, so the quantity of goods and service can be increase.

Q4. If 11 units can sold at price of $3, the 11th unit also sold for $3, the change in revenue will $3.

So, marginal revenue will be $3.