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.Management Sciences
Category: Monopoly
The monopolist’s supply curve ?
A. does not exist
B. is the marginal cost curve above average variable cost?
C. is the marginal cost curve above average total cost
D. is the upward-sloping portion of the average total cost curve
E. The upward-sloping portion of the average variable cost
In monopoly which of the following is true ?
A. There are many buyers and sellers
B. There is one main buyer
C. There is one main seller
D. The actions of one firm do not affect the market price and quantity
When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?
A. below the price because the price effect outweighs the output effect
B. above the price because the output effect outweighs the price effect
C. above the price because the price effect outweighs the output effect
D. below the price because the output effect outweighs the price effect
The inefficiency associated with monopoly is due to ?
A. underproduction of the good
B. the monopoly’s profits
C. the monopoly’s losses
D. overproduction of the good
Public ownership of natural monopolies ?
A. tends to be inefficient.
B. usually lowers the cost of production dramatically.
C. creates synergies between the newly acquired firm and other government-owned companies.
D. does none of the things described in these answers
In the UK the government ?
A. Bans monopolies
B. Fines all monopolies
C. Prevents firms acquiring more than 25% of the market
D. Has the right to investigate monopolies and will assess each one on its own merits
Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost
In price discrimination, which section of the market is charged the higher price ?
A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand
In monopoly in long run equilibrium ?
A. The firm is Productively efficient
B. The firm is allocatively inefficient
C. The firm produces where marginal cost is less than marginal revenue
D. The firm produces at the socially optimal level
A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ?
A. natural monopoly
B. perfect competitor
C. government monopoly
D. regulated monopoly
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