Question 1

In a competitive market,the single firm

Accepted Answer

A) Competes with other firms for its share of the market 
B) Is unable to raise the price of the product 
C) Can increase its sales by advertising 
D) Can increase its sales by lowering its price 
E) Is all of the above 
A) Competes with other firms for its share of the market 
B) Is unable to raise the price of the product 
C) Can increase its sales by advertising 
D) Can increase its sales by lowering its price 
E) Is all of the above

Question 2

A major objective of firms in all types of market structures is

Accepted Answer

A) Output restriction 
B) Output maximization 
C) To raise prices 
D) Profit maximization 
E) To maximize revenues 
A) Output restriction 
B) Output maximization 
C) To raise prices 
D) Profit maximization 
E) To maximize revenues

Question 3

Licensing of barbers insures that we will get better haircuts at the same prices or the same quality of haircuts at lower prices.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a government barrier to entry?

Accepted Answer

A) An occupational license 
B) Ownership of raw materials 
C) Product differentiation 
D) Advertising 
E) All of the above 
A) An occupational license 
B) Ownership of raw materials 
C) Product differentiation 
D) Advertising 
E) All of the above

Question 5

Some monopolists block entry into their markets through their control of the raw materials needed to produce the product.

Accepted Answer

A) True 
 B)False

Question 6

Sellers in a competitive market must take into account what buyers will do and those in the monopolized market do not.

Accepted Answer

A) True 
 B)False

Question 7

For a firm,at the output level at which marginal revenue equals marginal cost,

Accepted Answer

A) Profits are highest 
B) There is neither unemployment nor inflation 
C) Output is maximized 
D) Revenues are maximized 
E) Costs are minimized 
A) Profits are highest 
B) There is neither unemployment nor inflation 
C) Output is maximized 
D) Revenues are maximized 
E) Costs are minimized

Question 8

The Following Questions Refer to the graph below,which is for a firm in a competitive market.
  
-Equilibrium price and quantity in the market are

Accepted Answer

A) $5 and 100 
B) $5 and 150 
C) $7 and 150 
D) $7 and more than 150 
E) None of the above 
A) $5 and 100 
B) $5 and 150 
C) $7 and 150 
D) $7 and more than 150 
E) None of the above

Question 9

The loss to society caused by monopoly power may be greater than simply the losses associated with deadweight losses because it also includes losses due to

Accepted Answer

A) Private barriers to entry 
B) Government barriers to entry 
C) Extensive product differentiation 
D) Occupational licensing 
E) All of the above 
A) Private barriers to entry 
B) Government barriers to entry 
C) Extensive product differentiation 
D) Occupational licensing 
E) All of the above

Question 10

The Following Questions Refer to the table below.  
-The 6-firm concentration ratio in this industry is

Accepted Answer

A) 0.6 
B) 0.7 
C) 0.8 
D) 0.9 
E) 1.0 
A) 0.6 
B) 0.7 
C) 0.8 
D) 0.9 
E) 1.0

Question 11

In a competitive market in the short run,firms

Accepted Answer

A) May earn profits or losses 
B) Always break even 
C) Earn neither profits nor losses 
D) Must be free to enter or exit the market 
E) Charge a high price and produce a low quantity 
A) May earn profits or losses 
B) Always break even 
C) Earn neither profits nor losses 
D) Must be free to enter or exit the market 
E) Charge a high price and produce a low quantity

Question 12

Which of the following is a negative consequence of allowing an unregulated natural monopoly?

Accepted Answer

A) Deadweight welfare loss 
B) Higher prices 
C) Restricted output 
D) All of the above 
E) None of the above 
A) Deadweight welfare loss 
B) Higher prices 
C) Restricted output 
D) All of the above 
E) None of the above

Question 13

Like other demand curves,the demand curve facing a competitive firm slopes downwarD.

Accepted Answer

A) True 
 B)False

Question 14

The dead-weight welfare loss due to monopoly is

Accepted Answer

A) Too small to be important 
B) About 10% of GDP per year 
C) Unable to be determined in a complex economy such as our own 
D) About 1% of GDP per year 
E) About .01% of GDP per year 
A) Too small to be important 
B) About 10% of GDP per year 
C) Unable to be determined in a complex economy such as our own 
D) About 1% of GDP per year 
E) About .01% of GDP per year

Question 15

The Following Questions Refer to the graph below.  
-If this industry is perfectly competitive,equilibrium price and output in the market will be

Accepted Answer

A) $16 and 10 
B) $12 and 10 
C) $12 and 14 
D) $8 and 14 
E) $8 and 10 
A) $16 and 10 
B) $12 and 10 
C) $12 and 14 
D) $8 and 14 
E) $8 and 10

Question 16

A perfectly competitive firm's supply curve is its

Accepted Answer

A) Demand curve 
B) Marginal revenue curve 
C) Total revenue curve 
D) Marginal cost curve 
E) Total cost curve 
A) Demand curve 
B) Marginal revenue curve 
C) Total revenue curve 
D) Marginal cost curve 
E) Total cost curve

Question 17

Concentration ratios provide a good measure of a firm's potential for exercising monopoly power.

Accepted Answer

A) True 
 B)False

Question 18

Severe competition in a market leads to a dead weight welfare loss to society.

Accepted Answer

A) True 
 B)False

Question 19

There is the possibility that the sheer size of some firms-their "bigness"-is a problem for an economy because

Accepted Answer

A) Big firms possess larger entry barriers 
B) Bigness implies that the people who run such firms are unethical 
C) Bigger firms are more inefficient 
D) The effects that the failure of large firms can have on the US economy 
E) The number of shares of stock that are traded in large firms 
A) Big firms possess larger entry barriers 
B) Bigness implies that the people who run such firms are unethical 
C) Bigger firms are more inefficient 
D) The effects that the failure of large firms can have on the US economy 
E) The number of shares of stock that are traded in large firms

Question 20

Which of the following is a barrier to entry?

Accepted Answer

A) Import restrictions 
B) Copyright laws 
C) Exclusive franchises 
D) Zoning ordinances 
E) All of the above 
A) Import restrictions 
B) Copyright laws 
C) Exclusive franchises 
D) Zoning ordinances 
E) All of the above

In a competitive market,the single firm

A major objective of firms in all types of market structures is

Licensing of barbers insures that we will get better haircuts at the same prices or the same quality of haircuts at lower prices.

Which of the following is a government barrier to entry?

Some monopolists block entry into their markets through their control of the raw materials needed to produce the product.

Sellers in a competitive market must take into account what buyers will do and those in the monopolized market do not.

For a firm,at the output level at which marginal revenue equals marginal cost,

The Following Questions Refer to the graph below,which is for a firm in a competitive market. -Equilibrium price and quantity in the market are

The loss to society caused by monopoly power may be greater than simply the losses associated with deadweight losses because it also includes losses due to

The Following Questions Refer to the table below. -The 6-firm concentration ratio in this industry is

In a competitive market in the short run,firms

Which of the following is a negative consequence of allowing an unregulated natural monopoly?

Like other demand curves,the demand curve facing a competitive firm slopes downwarD.

The dead-weight welfare loss due to monopoly is

The Following Questions Refer to the graph below. -If this industry is perfectly competitive,equilibrium price and output in the market will be

A perfectly competitive firm's supply curve is its

Concentration ratios provide a good measure of a firm's potential for exercising monopoly power.

Severe competition in a market leads to a dead weight welfare loss to society.

There is the possibility that the sheer size of some firms-their "bigness"-is a problem for an economy because

Which of the following is a barrier to entry?

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Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 8: The Economics of Monopoly Power: Can Markets Be Controlled

In a competitive market,the single firm

A major objective of firms in all types of market structures is

Licensing of barbers insures that we will get better haircuts at the same prices or the same quality of haircuts at lower prices.

Which of the following is a government barrier to entry?

Some monopolists block entry into their markets through their control of the raw materials needed to produce the product.

Sellers in a competitive market must take into account what buyers will do and those in the monopolized market do not.

For a firm,at the output level at which marginal revenue equals marginal cost,

The Following Questions Refer to the graph below,which is for a firm in a competitive market. -Equilibrium price and quantity in the market are

The loss to society caused by monopoly power may be greater than simply the losses associated with deadweight losses because it also includes losses due to

The Following Questions Refer to the table below. -The 6-firm concentration ratio in this industry is

In a competitive market in the short run,firms

Which of the following is a negative consequence of allowing an unregulated natural monopoly?

Like other demand curves,the demand curve facing a competitive firm slopes downwarD.

The dead-weight welfare loss due to monopoly is

The Following Questions Refer to the graph below. -If this industry is perfectly competitive,equilibrium price and output in the market will be

A perfectly competitive firm's supply curve is its

Concentration ratios provide a good measure of a firm's potential for exercising monopoly power.

Severe competition in a market leads to a dead weight welfare loss to society.

There is the possibility that the sheer size of some firms-their "bigness"-is a problem for an economy because

Which of the following is a barrier to entry?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters