US13L1

  • 1

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    A monopoly occurs when_________________.

    only natural barriers to entry exist
    close substitutes exist
    only franchises exist
    a barrier to entry into the industry exists

  • 2

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    When natural or legal forces work to protect a firm from competition, the market is said to have __________________.

    non-competitive entry
    non-competitive supply
    barriers to entry
    restricted competition

  • 3

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    The granting of a patent or a copyright ________________.

    creates a legal monopoly
    creates a natural monopoly
    reduces prices
    stimulates competition in the arts

  • 4

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    The existence of economies of scale creates ________________.

    a market in which many firms make identical products
    a legal monopoly
    a natural monopoly
    a government monopoly

  • 5

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    When Dominant Pizza is willing to sell a pizza to a student who lives on-campus at a lower price than it is willing to sell the identical pizza to a student who lives a block away from the campus, the pizza firm is ______________.

    incurring a loss on on-campus sales
    unfair
    practicing price discrimination
    eliminating all competition

  • 6

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    A monopoly that sells every unit of its output at the same price is a _______________________.

    single-price monopoly
    legal monopoly
    unit-price monopoly
    natural monopoly

  • 7

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    Producer surplus is equal to _________________.

    the opportunity cost of producing the good minus the consumer's value of the good
    the opportunity cost of producing the good minus the marginal cost
    the producer's revenue minus the value of the good
    the producer's revenue minus the opportunity cost of production

  • 8

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    Deadweight loss measures the inefficiency of the market as the loss of ________________.

    consumer surplus only
    consumer surplus minus producer surplus
    consumer surplus and producer surplus
    producer surplus only

  • 9

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    The attempt to capture consumer surplus, producer surplus, or economic profit is called __________________.

    rent seeking
    a natural monopoly
    price discrimination
    gouging

  • 10

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    Consumer surplus is the ____________________________.

    value the consumer places on a good minus its price
    opportunity cost of a good minus its value
    price of a good minus its opportunity cost
    price of a good minus the value the consumer places on it

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