US13L2

  • 1

    •

    A copyright creates a monopoly by restricting _______________________.

    the number of creators and inventors
    the prices that can be charged
    entry into the market
    demand for the product

  • 2

    •

    A patent creates a monopoly by restricting _______________________.

    entry into the market
    demand for the product
    the amount of advertising that can be undertaken
    the number of complements for the product

  • 3

    •

    Which of the following firms is most likely to be a monopoly?

    shoe store
    computer store
    local fast-food restaurant
    local distributor of electricity

  • 4

    •

    When the demand for a good or service limits the quantity that can be sold to a output at which the firm experiences economies of scale, the ________________.

    firm is a natural monopoly
    firm is a single-price monopoly
    good that the industry produces has close substitutes
    firms are protected from competition by a legal barrier

  • 5

    •

    Firms that can price discriminate between customers do so to ______________________.

    increase supply
    increase employment
    support lower-income families
    maximize profits

  • 6

    •

    A single-price monopolist will produce the output at which ________________________.

    marginal revenue equals marginal cost
    marginal revenue is zero
    demand is perfectly inelastic
    demand is inelastic

  • 7

    •

    The maximum amount a rent seeker would pay for a monopoly is the ______________________.

    deadweight loss
    market price
    monopoly's normal profit
    monopoly's economic profit

  • 8

    •

    A single-price monopoly causes a deadweight loss because it ____________________.

    restricts output
    restricts demand
    increases marginal cost
    maximizes marginal revenue

  • 9

    •

    When a monopoly perfectly price discriminates, there is _______________.

    a large consumer surplus
    an increase in supply
    no producer surplus
    no consumer surplus

  • 10

    •

    A perfect price discriminating monopoly produces _____________________________.

    the same quantity of output as a perfectly competitive industry
    the same quantity as a single-price monopoly
    a larger ouput than a perfectly competitive industry
    an output at which marginal revenue exceeds marginal cost

    Please enter your name and press the SEND button