Question 1

Occasionally, _______ may lead to pure monopoly; in other market conditions, they may limit competition _______.

Accepted Answer

A)  barriers to entry; to a few oligopoly firms 
B)  barriers to entry; to a natural monopoly 
C)  deregulation; requiring new patent law 
D)  deregulation; requiring new copyright law 
A)  barriers to entry; to a few oligopoly firms 
B)  barriers to entry; to a natural monopoly 
C)  deregulation; requiring new patent law 
D)  deregulation; requiring new copyright law

Question 2

By 2007, US market deregulation has proven to be most toxic to the overall health of the US economy in the _______.

Accepted Answer

A)  telecommunications sector 
B)  postal services sector 
C)  banking sector 
D)  nuclear power sector 
A)  telecommunications sector 
B)  postal services sector 
C)  banking sector 
D)  nuclear power sector

Question 3

The slope of the demand curve for a monopoly firm is

Accepted Answer

A)  horizontal, parallel to the x-axis 
B)  vertical, parallel to the y-axis 
C)  upward sloping 
D)  downward sloping 
A)  horizontal, parallel to the x-axis 
B)  vertical, parallel to the y-axis 
C)  upward sloping 
D)  downward sloping

Question 4

Refer to the table below. This information reflects the demand curve and the average cost curve for a firm that is a natural monopoly. What will this firm's profits equal?

Accepted Answer

A)  $2.50 
B)  $1.50 
C)  $1.25 
D)  $0.50 
A)  $2.50 
B)  $1.50 
C)  $1.25 
D)  $0.50

Question 5

When a monopolist increases sales by one unit,

Accepted Answer

A)  it gains some marginal revenue from selling that extra unit. 
B)  more low priced sales cause negative marginal revenues. 
C)  every other unit must now be sold at a lower price. 
D)  it loses some marginal revenue and all of the above. 
A)  it gains some marginal revenue from selling that extra unit. 
B)  more low priced sales cause negative marginal revenues. 
C)  every other unit must now be sold at a lower price. 
D)  it loses some marginal revenue and all of the above.

Question 6

Which of the following denotes the typical shape of the monopolist's total cost curve?

Accepted Answer

A)  total costs decrease and become flatter as output rises 
B)  total costs rise and grow steeper as output rises 
C)  higher output levels create the typical downward sloping cost curve 
D)  total costs are typically constant and are shown by a straight horizontal line 
A)  total costs decrease and become flatter as output rises 
B)  total costs rise and grow steeper as output rises 
C)  higher output levels create the typical downward sloping cost curve 
D)  total costs are typically constant and are shown by a straight horizontal line

Question 7

The two primary factors determining monopoly market power are the firm's

Accepted Answer

A)  revenues and size of its customer base 
B)  demand curve and its cost structure 
C)  variable cost curve and its fixed cost structure 
D)  demand curve and level of wealth within its market 
A)  revenues and size of its customer base 
B)  demand curve and its cost structure 
C)  variable cost curve and its fixed cost structure 
D)  demand curve and level of wealth within its market

Question 8

Which of the following is most unlikely to present a barrier to entry into a market?

Accepted Answer

A)  market forces 
B)  patent laws 
C)  technological advantages 
D)  deregulation 
A)  market forces 
B)  patent laws 
C)  technological advantages 
D)  deregulation

Question 9

For a monopolistic firm, the demand for its product is

Accepted Answer

A)  unitary elastic 
B)  completely elastic 
C)  completely inelastic 
D)  neither b or c 
A)  unitary elastic 
B)  completely elastic 
C)  completely inelastic 
D)  neither b or c

Question 10

The figure below shows the demand curve and the long run average cost curve for an electric company.
This market is a natural monopoly because

Accepted Answer

A)  the long run average cost curve is U-shaped 
B)  when producing large quantities, the long run average cost is greater than demand 
C)  when producing small quantities, the demand is higher than long run average cost 
D)  the demand curve intersects the long run average cost curve at a point where the long run average cost curve is downward sloping 
A)  the long run average cost curve is U-shaped 
B)  when producing large quantities, the long run average cost is greater than demand 
C)  when producing small quantities, the demand is higher than long run average cost 
D)  the demand curve intersects the long run average cost curve at a point where the long run average cost curve is downward sloping

Question 11

When J.K. Rowling exerts copyright ownership of her literary works, she creates a monopoly by restricting

Accepted Answer

A)  the number of inventors. 
B)  unit production costs. 
C)  entry into the market. 
D)  demand for the product. 
A)  the number of inventors. 
B)  unit production costs. 
C)  entry into the market. 
D)  demand for the product.

Question 12

If it was possible for one company to gain ownership control all of the uranium processing plants in the US, then

Accepted Answer

A)  they will strive to reach efficiencies only they know how to make. 
B)  that firm could set up barriers to entry to discourage competition. 
C)  government will deregulate to ensure the company's monopoly. 
D)  the factors of market demand and supply will set the price. 
A)  they will strive to reach efficiencies only they know how to make. 
B)  that firm could set up barriers to entry to discourage competition. 
C)  government will deregulate to ensure the company's monopoly. 
D)  the factors of market demand and supply will set the price.

Question 13

When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,

Accepted Answer

A)  the firm is a natural monopoly. 
B)  there are close substitutes for the good the firm produces. 
C)  firm is a single-price monopoly. 
D)  firm is well protected from competition by a legal barrier. 
A)  the firm is a natural monopoly. 
B)  there are close substitutes for the good the firm produces. 
C)  firm is a single-price monopoly. 
D)  firm is well protected from competition by a legal barrier.

Question 14

The typical pattern of costs for a monopoly can be analyzed by using:
I. total cost
II. fixed cost
III. variable cost
IV. marginal cost
V. average cost
VI. average variable cost

Accepted Answer

A)  I, II, and III 
B)  I, III and IV 
C)  I, II, III, IV, and VI 
D)  all of the above 
A)  I, II, and III 
B)  I, III and IV 
C)  I, II, III, IV, and VI 
D)  all of the above

Question 15

Which of the following is most likely to be a monopoly?

Accepted Answer

A)  local fast-food restaurant 
B)  local electricity distributor 
C)  local bathroom fixtures shop 
D)  local television broadcaster 
A)  local fast-food restaurant 
B)  local electricity distributor 
C)  local bathroom fixtures shop 
D)  local television broadcaster

Question 16

Which one of the following is the most accurate description of a monopolist?

Accepted Answer

A)  a sole producer of a narrowly defined product class, such as brown, Grade A eggs produced in Eagle County, Colorado 
B)  a firm that is very large relative to all its competitors within a narrow product class 
C)  a sole producer of a product for which good substitutes are lacking in a market with high barriers to entry 
D)  a large, multinational firm that produces a single product in a narrow product class 
A)  a sole producer of a narrowly defined product class, such as brown, Grade A eggs produced in Eagle County, Colorado 
B)  a firm that is very large relative to all its competitors within a narrow product class 
C)  a sole producer of a product for which good substitutes are lacking in a market with high barriers to entry 
D)  a large, multinational firm that produces a single product in a narrow product class

Question 17

A natural monopoly occurs when the quantity demanded is _______ the minimum quantity it takes to be at the bottom of the long-run average cost curve.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  a or c above 
A)  greater than 
B)  less than 
C)  equal to 
D)  a or c above

Question 18

The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal?

Accepted Answer

A)  $1,200 
B)  $1,600 
C)  $1,000 
D)  $600 
A)  $1,200 
B)  $1,600 
C)  $1,000 
D)  $600

Question 19

The form of legal protection intended to prevent reproduction of original works is referred to as _______ law.

Accepted Answer

A)  patent 
B)  trademark 
C)  copyright 
D)  trade secret 
A)  patent 
B)  trademark 
C)  copyright 
D)  trade secret

Question 20

In the event that Only1Corp. obtains control of all the natural gas producers in the US, it would most likely

Accepted Answer

A)  have a patent giving it exclusive legal rights to make, use, and sell for a limited time. 
B)  raise prices, cut production, and realize positive economic profits. 
C)  have legal protection to prevent copying its methods of production for commercial use. 
D)  acquire rights for its investors to produce and sell their product. 
A)  have a patent giving it exclusive legal rights to make, use, and sell for a limited time. 
B)  raise prices, cut production, and realize positive economic profits. 
C)  have legal protection to prevent copying its methods of production for commercial use. 
D)  acquire rights for its investors to produce and sell their product.

Occasionally, _ may lead to pure monopoly; in other market conditions, they may limit competition _.

By 2007, US market deregulation has proven to be most toxic to the overall health of the US economy in the _______.

The slope of the demand curve for a monopoly firm is

Refer to the table below. This information reflects the demand curve and the average cost curve for a firm that is a natural monopoly. What will this firm's profits equal?

When a monopolist increases sales by one unit,

Which of the following denotes the typical shape of the monopolist's total cost curve?

The two primary factors determining monopoly market power are the firm's

Which of the following is most unlikely to present a barrier to entry into a market?

For a monopolistic firm, the demand for its product is

The figure below shows the demand curve and the long run average cost curve for an electric company. This market is a natural monopoly because

When J.K. Rowling exerts copyright ownership of her literary works, she creates a monopoly by restricting

If it was possible for one company to gain ownership control all of the uranium processing plants in the US, then

When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,

The typical pattern of costs for a monopoly can be analyzed by using: I. total cost II. fixed cost III. variable cost IV. marginal cost V. average cost VI. average variable cost

Which of the following is most likely to be a monopoly?

Which one of the following is the most accurate description of a monopolist?

A natural monopoly occurs when the quantity demanded is _______ the minimum quantity it takes to be at the bottom of the long-run average cost curve.

The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal?

The form of legal protection intended to prevent reproduction of original works is referred to as _______ law.

In the event that Only1Corp. obtains control of all the natural gas producers in the US, it would most likely

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Exam 9: Monopoly

Occasionally, _______ may lead to pure monopoly; in other market conditions, they may limit competition _______.

By 2007, US market deregulation has proven to be most toxic to the overall health of the US economy in the _______.

The slope of the demand curve for a monopoly firm is

Refer to the table below. This information reflects the demand curve and the average cost curve for a firm that is a natural monopoly. What will this firm's profits equal?

When a monopolist increases sales by one unit,

Which of the following denotes the typical shape of the monopolist's total cost curve?

The two primary factors determining monopoly market power are the firm's

Which of the following is most unlikely to present a barrier to entry into a market?

For a monopolistic firm, the demand for its product is

The figure below shows the demand curve and the long run average cost curve for an electric company. This market is a natural monopoly because

When J.K. Rowling exerts copyright ownership of her literary works, she creates a monopoly by restricting

If it was possible for one company to gain ownership control all of the uranium processing plants in the US, then

When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,

The typical pattern of costs for a monopoly can be analyzed by using: I. total cost II. fixed cost III. variable cost IV. marginal cost V. average cost VI. average variable cost

Which of the following is most likely to be a monopoly?

Which one of the following is the most accurate description of a monopolist?

A natural monopoly occurs when the quantity demanded is _______ the minimum quantity it takes to be at the bottom of the long-run average cost curve.

The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal?

The form of legal protection intended to prevent reproduction of original works is referred to as _______ law.

In the event that Only1Corp. obtains control of all the natural gas producers in the US, it would most likely

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Occasionally, _ may lead to pure monopoly; in other market conditions, they may limit competition _.