monopoly MCQs – Page 2

B. There is one main sellers

C. Products are differentiated

D. The firm is a price taker

B. close substitute products

C. perfect information

D. low barriers to entry

A. will remain the same

C. will fall

D. could either rise or fall depending on the elasticity of the monopolists supply curve

A. a high proportion of the total cost in the cost of capital goods

B. economies of scale

C. the market is very small

B. the monopolys profits

C. the monopolys losses

D. overproduction of the good

A. create public ownership of natural monopolies

B. increase merger activity to help generate synergies that reduce costs and raise efficiency.

C. regulate the prices charged by a monopoly

D. all of these answers

A. government monopoly

B. regulated monopoly

D. perfect competitor

A. The actions of one firm do not affect the market price and quantity

B. There are many buyers and sellers

C. There is one main buyer

A. the price is less than the marginal revenue

B. they are equal

D. there is no relation

A. marginal cost equals price

C. none of these answers

D. marginal revenue equals price

E. marginal cost equals demand

B. charging different prices for goods with different costs of production

C. charging different prices based on cost-of-service differences

D. charging different prices on the basis of race

A. The government gives a single firm the exclusive right to produce some good

B. A key resource is owned by a single firm

C. The costs of production make a single producer more efficient than a large number of productions

A. Thomson owns a key resource in the production of textbooks.

B. Thomson is a very large company

C. Thomson is a natural monopoly,

A. decrease output

C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost

D. raise the price

A. Lies below and converges with the demand curve

C. Equals the demand curve

D. Is parallel with the demand curve