Question 1 of 29
One defining characteristic of pure monopoly is that:
•
A. The monopolist is a price taker
•
B. The monopolist uses advertising
•
C. The monopolist produces a product with no close substitutes
•
D. There is relatively easy entry into the indust...
Question 1 of 29
One defining characteristic of pure monopoly is that:
•
A. The monopolist is a price taker
•
B. The monopolist uses advertising
•
C. The monopolist produces a product with no close substitutes
•
D. There is relatively easy entry into the industry, but exit is difficult
Question 2 of 29
Which is a barrier to entry?
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A. Close substitutes
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B. Diseconomies of scale
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, C. Government licensing
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D. Price-taking behavior
Question 3 of 29
Other things equal, which reduces competition in an industry?
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A. Patent laws
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B. Freedom of entry for new firms
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C. An increase in the number of producers
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D. An increase in the number of buyers
Question 4 of 29
The representative firm in a purely competitive industry:
•
, A. Will always earn a profit in the short run
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B. May earn either an economic profit or a loss in the long run
•
C. Will always earn an economic profit in the long run
•
D. Will earn an economic profit of zero in the long run
Question 5 of 29
An example of a monopolistically competitive industry would be:
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A. Steel
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B. Soybeans
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C. Electricity
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