Filters
Question type
Study Flashcards

Explain why monopolies are generally inefficient. -Why is output different for a monopolist than for a firm in a perfectly competitive market?

Correct Answer

verifed

verified

Assume that Acme Anvil company sells 100 anvils at a price of $5 each. Cost per anvil is $4. What is total cost?


A) $5
B) $500
C) $400
D) $100

Correct Answer

verifed

verified

Understand the production and pricing decisions of a monopolist. -How is profit maximizing quantity decision the same for a monopoly and for a firm in a perfectly competitive market? How is the pricing decision different? Explain.

Correct Answer

verifed

verified

Explain the sources of a natural monopoly. -How do traditional and progressive economists differ in their analyses of monopolies?

Correct Answer

verifed

verified

The demand curve for a firm in a perfectly competitive market is


A) upward sloping
B) downward sloping.
C) horizontal.
D) vertical.

Correct Answer

verifed

verified

C

Assume that Acme Anvil company sells 100 anvils at a price of $5 each. Cost per anvil is $4. What is total profit?


A) $5
B) $500
C) $400
D) $100

Correct Answer

verifed

verified

D

Whats defention of terms: -marginal revenue

Correct Answer

verifed

verified

the change in the total revenue a firm will receive as a result of the sale of one additional unit.

Explain now monopoly markets differ from competitive markets -What assumptions of a perfectly competitive market are violated? Explain.

Correct Answer

verifed

verified

Which of the following would be an example of a protective tariff?


A) the government imposes a tax on imported toys containing lead paint in order to protect American children.
B) the government imposes a tax on imported steel to protect domestic steel producers from competition with lower prices imports.
C) the government imposes a tax on companies with high pollution levels in order to protect the environment.
D) the government imposes a tax on imported goods made with forced labor or child labor in order to protect American workers from competition with goods made under such conditions.

Correct Answer

verifed

verified

If a monopolist wishes to sell a larger quantity then


A) he should leave price unchanged, since he can sell as much as he wants at the current price.
B) he should raise price, since he is a monopolist.
C) he should lower price, in order to increase quantity demanded.
D) he should lower output in order to increase price.

Correct Answer

verifed

verified

A monopsony is


A) the only producer of televisions in Japan.
B) the only seller of a product in an industry.
C) the only buyer of a product in an industry.
D) the kind of music available before stereo.

Correct Answer

verifed

verified

Understand the production and pricing decisions of a monopolist. -How do monopolists maintain their monopoly? How does this violate assumptions of a perfectly competitive market? Explain

Correct Answer

verifed

verified

A perfect monopoly occurs when


A) one person owns all of the property.
B) one firm or seller constitutes the entire industry.
C) one firm has absolute power over price in an industry.
D) one firm is the only buyer of a particular good.

Correct Answer

verifed

verified

Whats defention of terms: -perfect monopoly

Correct Answer

verifed

verified

Assume that Acme Anvil company is currently selling 100 anvils at a price of $5 each. Cost per anvil is $4. What is total revenue?


A) $5
B) $500
C) $400
D) $100

Correct Answer

verifed

verified

List types of government regulation of monopolies and explain their effectiveness. -State examples of great attempts to regulate monopolies.

Correct Answer

verifed

verified

Monopoly profits are considered "excess profits" when


A) the average cost curve is below average revenue.
B) the average revenue curve is below average cost.
C) the marginal cost curve intersects marginal revenue.
D) average revenue and marginal revenue are equal.

Correct Answer

verifed

verified

A natural monopoly is


A) a monopoly in a natural resource industry.
B) a monopoly in which minimum average cost is not reached until production saturates the market.
C) a monopoly in which minimum average cost occurs at any level of production.
D) a monopoly supplying a natural or organic product.

Correct Answer

verifed

verified

Explain why monopolies are generally inefficient. -Can a monopolist set both price and quantity? Explain.

Correct Answer

verifed

verified

Whats defention of terms: -natural monopoly

Correct Answer

verifed

verified

Showing 1 - 20 of 27

Related Exams

Exam 1

Prehistoric Communal Institutions in the Middle East

46 Questions

Exam 2

Communal Equality to Slavery in the Middle East

44 Questions

Exam 3

Slavery to Feudalism in Western Europe

23 Questions

Exam 4

Feudalism and Paternalism in England

30 Questions

Exam 5

Feudalism to Capitalism in England

43 Questions

Exam 6

Mercantilism in England

37 Questions

Exam 7

Pre-Capitalism to Industrial Capitalism in the United States 1776-1865

42 Questions

Exam 8

Classical Liberalism Defense of Industrial Capitalism

27 Questions

Exam 9

Socialist Protest Against Industrial Capitalism

27 Questions

Exam 10

Marx Critique and Alternative to Capitalism

51 Questions

Exam 11

Rise of Corporate Capitalism in the United States, 1865-1900

35 Questions

Exam 12

Neoclassical Economics Defense of Corporate Capitalism

23 Questions

Exam 13

Veblen Critique of Corporate Capitalism

39 Questions

Exam 14

Growth and Depression in the United States, 1900-1940

38 Questions

Exam 15

Keynesian Economics and the Great Depression

21 Questions

Exam 16

The United States and Global Capitalism, 1940-2006

59 Questions

Exam 17

Robinson Crusoe Two Perspectives on Microeconomics

24 Questions

Exam 18

The Two Americas Inequality, Class, and Conflict

26 Questions

Exam 19

Inequality, Exploitation, and Economic Institutions

38 Questions

Exam 20

Prices, Profits, and Exploitation

36 Questions

Exam 21

Market Power and Global Corporations

33 Questions

Exam 22

Economics of Racial and Gender Discrimination

28 Questions

Exam 23

Environmental Devastation

31 Questions

Exam 24

Government and Inequality

40 Questions

Exam 25

Economic Democracy

33 Questions

Exam 26

Scarcity and Choice Neoclassical View

59 Questions

Exam 27

Simple Analytics of Supply and Demand

100 Questions

Exam 28

Consumption Theory: Demand

39 Questions

Exam 29

Production Theory Supply

50 Questions

Exam 30

Costs of Production

46 Questions

Exam 31

Work and Wages Neoclassical View of Income Distribution

53 Questions

Exam 32

Prices and Profits in Perfect Competition

30 Questions

Exam 34

Monopolistic Competition and Oligopoly

21 Questions

Exam 35

Market Failures Public Goods, Market Power, and Externalities

46 Questions

Exam 36

History of Business Cycles and Human Misery

25 Questions

Exam 37

National Income Accounting How to Map the Circulation of Money and Goods

42 Questions

Exam 38

Money and Profit Says Law and Institutionalist Criticism

23 Questions

Exam 39

Neoclassical View of Aggregate Supply and Demand

21 Questions

Exam 40

Keynesian View of Aggregate Supply and Demand

28 Questions

Exam 41

How to Measure Instability

26 Questions

Exam 42

Consumer Spending and Labor Income

31 Questions

Exam 43

Investment Spending and Profit

22 Questions

Exam 44

The Multiplier

27 Questions

Exam 45

Business Cycles and Unemployment

33 Questions

Exam 46

Growth and Waste

32 Questions

Exam 47

Fiscal Policy

45 Questions

Exam 48

Government Spending and Taxes

18 Questions

Exam 49

Money, Banking, and Credit

42 Questions

Exam 50

Inflation

36 Questions

Exam 51

Monetary Policy

39 Questions

Exam 52

Exports and Imports

19 Questions

Exam 53

International Trade, Investment, and Finance How Instability Spreads Around the World

19 Questions

Exam 54

Debate on Globalization

24 Questions

Exam 55

Debate on Free Trade

51 Questions

Exam 56

Development

32 Questions

Show Answer