Search
.Management Sciences
Category: Monopoly
If regulators break up a natural monopoly into many smaller firms, the cost of production ?
A. will rise
B. will fall
C. will remain the same
D. could either rise or fall depending on the elasticity of the monopolist’s supply curve
In order to maximize profits, a monopoly company will produce that quantity at which the ?
A. marginal revenue equals average total cost
B. Price equals marginal revenue
C. marginal revenue equals marginal cost
D. total revenue equals total cost
In monopoly when abnormal profits are made ?
A. The price set is greater than the marginal cost
B. The price is less than the average cost
C. The average revenue equals the marginal cost
D. Revenue equals total cost
A monopolist maximizes profit by producing the quantity at which ?
A. marginal revenue equals marginal cost
B. marginal revenue equals price
C. marginal cost equals price
D. marginal cost equals demand
E. none of these answers
Which of the following is necessary for a natural monopoly ?
A. economies of scale
B. a high proportion of the total cost in the cost of capital goods
C. the market is very small
D. all of the above
Which of the following is not a barrier to entry in a monopolized market ?
A. A single firm is very large
B. The government gives a single firm the exclusive right to produce some good
C. The costs of production make a single producer more efficient than a large number of productions
D. A key resource is owned by a single firm
In order to practice price discrimination which of the following is needed ?
A. some degree of monopoly power
B. an ability to separate the market
C. an ability to prevent reselling
D. all of the above
A monopoly is able to continue to generate economic profits in the long run because ?
A. there is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. the monopolist is financially powerful.
D. antitrust laws eliminate competitors for a specified number of years.
E. of all of the things described in these answers
The marginal revenue curve in monopoly ?
A. Equals the demand curve
B. Is parallel with the demand curve
C. Lies below and converges with the demand curve
D. Lies below and diverges from the demand curve
Which of the following is a characteristic of pure monopoly ?
A. One seller of the product
B. low barriers to entry
C. close substitute products
D. perfect information
Recent Comments