Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Microeconomics Study Set 30

Business

Quiz 14 :

Monopoly and Monopolistic Competition

Quiz 14 :

Monopoly and Monopolistic Competition

search
arrow
Significant barriers to entry exist in a monopolistically competitive industry.
Free
True False
Answer:

Answer:

False

arrow
Monopoly is a market structure in which:
Free
Multiple Choice
Answer:

Answer:

A

arrow
A monopolistically competitive firm faces a downward-sloping demand curve.
Free
True False
Answer:

Answer:

True

arrow
A market structure in which one firm makes up the entire market is:
Multiple Choice
Answer:
arrow
If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is:
Multiple Choice
Answer:
arrow
The profit-maximizing output level for a monopolist occurs where marginal revenue equals marginal cost.
True False
Answer:
arrow
When a monopolistically competitive firm is in long-run equilibrium, average total cost is at its minimum.
True False
Answer:
arrow
For a monopolist, the point where the marginal revenue curve intersects the horizontal axis is:
Multiple Choice
Answer:
arrow
A profit-maximizing monopolist will always set price equal to marginal cost.
True False
Answer:
arrow
A price-discriminating monopolist will make less in profit than will one that does not price-discriminate.
True False
Answer:
arrow
Since marginal revenue is less than price for a monopolist, a monopolist maximizes profits by equating marginal revenue and marginal cost, not price and marginal cost.
True False
Answer:
arrow
Monopolies that exist because economies of scale create a barrier to entry are called natural monopolies.
True False
Answer:
arrow
If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.
True False
Answer:
arrow
A monopoly firm is different from a competitive firm in that:
Multiple Choice
Answer:
arrow
Under normal monopoly, P > MC, and so the marginal benefit to society of increasing output exceeds the marginal cost. This means that an increase in output will increase welfare.
True False
Answer:
arrow
A monopolistically competitive industry has many firms that sell differentiated products.
True False
Answer:
arrow
A monopolist will always make a profit in the short run.
True False
Answer:
arrow
The demand curve for a monopolist differs from the demand curve faced by a competitive firm because the demand curve for:
Multiple Choice
Answer:
arrow
A significant difference between monopoly and perfect competition is that:
Multiple Choice
Answer:
arrow
The demand curve for a monopolist is:
Multiple Choice
Answer:
Showing 1 - 20 of 231