Econ 4 test

question

Which of the following is true of monopoly

answer

There are no close substitutes for the product being produced

question

A natural monopoly is based on economies of scale

answer

True

question

In the monopoly market structure new firm

answer

Cannot profitably enter the industry even in the long run

question

Which of the following is not considered a barrier to entry

answer

Diseconomics of scale

question

Natural monopolies form when

answer

Long-run average cost declines as a firm expands output

question

The demand curve a monopolist faces

answer

Is the market demand curve

question

In order to sell an additional unit of its product a monopolist must decrease price on all units

answer

True

question

Average revenue demand and price all depicted by the same curve for a monopoly

answer

True

question

Which of the following is true of marginal revenue for monopolist that charges a single price

answer

P>MR

question

Assuming the firm should not shut down the profit maximizing price and quality for the monopolist in Exhibit 9-9 which does not price discriminate or

answer

P=$4 and Q=7

question

Maximum profit for the non discriminating monopolist an Exhibit 9-9 is

answer

Matt miserable with the information given

question

When compared to firms in perfect competition monopolist 10 to charge prices in offer qualities of output

answer

Higher lower

question

A monopolist price discriminates by

answer

Charging different buyers different prices for the same product

question

Why would we be likely to observe Dennis engaging in price discrimination

answer

It is nearly impossible to resell the services of a dentist

question

Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency

answer

A monopolist fails to expand output to the level where the consumers evaluation of an additional unit is just equal to its opportunity cost

question

Firms may easily answer a monopolitically competitive market

answer

True

question

The term monopolitic the competition

answer

Denotes an industry with many sellers of differentiated products

question

In a monopolitically competitive market all of the following are correct except

answer

There are no barriers to entry

question

To maximize profit the firm in Exhibit 10-15 produces

answer

20 units and sell them at $20

question

In Exhibit 10-15 at the profit maximizing level of output the total revenue is

answer

$400

question

And Exhibit 10-15 at the profit maximizing level of output the total cost is

answer

$280

question

In Exhibit 10-15 the maximum profit is

answer

$120

question

To maximize cartel profit the members must allocate output so that the marginal cost for the final produced by each firm is

answer

Identical

question

A cartel is

answer

Explicit collusion

question

Pollution is easier to achieve and maintain in a oligopoly when

answer

The firms Products are homogeneous

1 of 25

question

Which of the following is true of monopoly

answer

There are no close substitutes for the product being produced

question

A natural monopoly is based on economies of scale

answer

True

question

In the monopoly market structure new firm

answer

Cannot profitably enter the industry even in the long run

question

Which of the following is not considered a barrier to entry

answer

Diseconomics of scale

question

Natural monopolies form when

answer

Long-run average cost declines as a firm expands output

question

The demand curve a monopolist faces

answer

Is the market demand curve

question

In order to sell an additional unit of its product a monopolist must decrease price on all units

answer

True

question

Average revenue demand and price all depicted by the same curve for a monopoly

answer

True

question

Which of the following is true of marginal revenue for monopolist that charges a single price

answer

P>MR

question

Assuming the firm should not shut down the profit maximizing price and quality for the monopolist in Exhibit 9-9 which does not price discriminate or

answer

P=$4 and Q=7

question

Maximum profit for the non discriminating monopolist an Exhibit 9-9 is

answer

Matt miserable with the information given

question

When compared to firms in perfect competition monopolist 10 to charge prices in offer qualities of output

answer

Higher lower

question

A monopolist price discriminates by

answer

Charging different buyers different prices for the same product

question

Why would we be likely to observe Dennis engaging in price discrimination

answer

It is nearly impossible to resell the services of a dentist

question

Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency

answer

A monopolist fails to expand output to the level where the consumers evaluation of an additional unit is just equal to its opportunity cost

question

Firms may easily answer a monopolitically competitive market

answer

True

question

The term monopolitic the competition

answer

Denotes an industry with many sellers of differentiated products

question

In a monopolitically competitive market all of the following are correct except

answer

There are no barriers to entry

question

To maximize profit the firm in Exhibit 10-15 produces

answer

20 units and sell them at $20

question

In Exhibit 10-15 at the profit maximizing level of output the total revenue is

answer

$400

question

And Exhibit 10-15 at the profit maximizing level of output the total cost is

answer

$280

question

In Exhibit 10-15 the maximum profit is

answer

$120

question

To maximize cartel profit the members must allocate output so that the marginal cost for the final produced by each firm is

answer

Identical

question

A cartel is

answer

Explicit collusion

question

Pollution is easier to achieve and maintain in a oligopoly when

answer

The firms Products are homogeneous

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Econ 4 test

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