Question 1

A firm that is the only seller of a good or service that does not have a close substitute is called

Accepted Answer

A)  a monopoly. 
B)  an oligopolist. 
C)  a market maker. 
D)  a price maker. 
A)  a monopoly. 
B)  an oligopolist. 
C)  a market maker. 
D)  a price maker.

Question 2

What is a possible advantage of a horizontal merger for the economy?

Accepted Answer

A)  The merging firms could avoid losses. 
B)  The merged firm might reap economies of scale which could translate into lower prices. 
C)  The degree of competition in the industry will be intensified. 
D)  The government stands to collect more corporate income tax revenue. 
A)  The merging firms could avoid losses. 
B)  The merged firm might reap economies of scale which could translate into lower prices. 
C)  The degree of competition in the industry will be intensified. 
D)  The government stands to collect more corporate income tax revenue.

Question 3

Figure 8.4   Figure 8.4 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.4.The monopoly's total cost of production is -.

Accepted Answer

A)  $21 600 
B)  $17 700 
C)  $9340 
D)  $7800 
A)  $21 600 
B)  $17 700 
C)  $9340 
D)  $7800

Question 4

The demand curve for a monopoly firm

Accepted Answer

A)  is perfectly inelastic. 
B)  lies below its marginal revenue curve. 
C)  is the same as the market demand curve. 
D)  is horizontal. 
A)  is perfectly inelastic. 
B)  lies below its marginal revenue curve. 
C)  is the same as the market demand curve. 
D)  is horizontal.

Question 5

What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve?
__________________________________________________________________________________________________________________________________________________________________________________________

Accepted Answer

A monopoly's marginal revenue curve lies

Question 6

Consider an industry that is made up of nine firms,each with a market share (per cent of sales)as follows: 
A.Firm A: 30%
B.Firm B: 20%
C.Firms C,D,and E: 10% each
D.Firms F,G,H,and J: 5% each
What is the value of the four-firm concentration ratio and how is the industry categorised?

Accepted Answer

A)  50%; monopolistic competition 
B)  70%; oligopoly 
C)  75%; oligopoly 
D)  80%; strongly oligopolistic 
A)  50%; monopolistic competition 
B)  70%; oligopoly 
C)  75%; oligopoly 
D)  80%; strongly oligopolistic

Question 7

If a monopolist's price is $50 per unit and its marginal cost is $25,then

Accepted Answer

A)  to maximise profit the firm should increase output. 
B)  to maximise profit the firm should decrease output. 
C)  to maximise profit the firm should continue to produce the output it is producing. 
D)  Not enough information is given to say what the firm should do to maximise profit. 
A)  to maximise profit the firm should increase output. 
B)  to maximise profit the firm should decrease output. 
C)  to maximise profit the firm should continue to produce the output it is producing. 
D)  Not enough information is given to say what the firm should do to maximise profit.

A firm that is the only seller of a good or service that does not have a close substitute is called

What is a possible advantage of a horizontal merger for the economy?

Figure 8.4 Figure 8.4 shows the demand and cost curves for a monopolist. -Refer to Figure 8.4.The monopoly's total cost of production is -.

The demand curve for a monopoly firm

Consider an industry that is made up of nine firms,each with a market share (per cent of sales)as follows: A.Firm A: 30% B.Firm B: 20% C.Firms C,D,and E: 10% each D.Firms F,G,H,and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorised?

If a monopolist's price is $50 per unit and its marginal cost is $25,then

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

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Exam 8: Monopoly Markets

A firm that is the only seller of a good or service that does not have a close substitute is called

What is a possible advantage of a horizontal merger for the economy?

Figure 8.4 Figure 8.4 shows the demand and cost curves for a monopolist. -Refer to Figure 8.4.The monopoly's total cost of production is -.

The demand curve for a monopoly firm

Consider an industry that is made up of nine firms,each with a market share (per cent of sales)as follows: A.Firm A: 30% B.Firm B: 20% C.Firms C,D,and E: 10% each D.Firms F,G,H,and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorised?

If a monopolist's price is $50 per unit and its marginal cost is $25,then

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters