Chapter 22 Flashcards
Which statement is false?
There are no monopolies in the United States
Which statement is false?
The monopolist produces at the minimum point of her ATC curve
Which statement is true
A monopoly is a firm that produces all the output in an industry
The monopolist produces
where MC = MR
Which statement is true?
The monopolist will not lose money in the long run
The most efficient output is found
at the bottom of the ATC curve
An example of government ownership of a monopoly would be
the Tennessee Valley Authority
Which statement is true?
The monopolist charges a higher price than the perfect competitor in the long run
Which statement is true?
All monopolies are very large firms. Most monopolists do not produce at an output in which MC = MR. The monopolist’s demand curve and MR curve are identical. * None is true*
A monopolist operates at the minimum point of her ATC curve
in neither the short run nor the long run
If the government attempts to break up a natural monopoly to enforce competition in an industry
the average cost of producing the good will increase
In the United States, natural monopolies
are commonly regulated by governments.
Patents function to
temporarily protect monopoly power
Monopoly firms are
sometimes very large
A public utility would be an example of
a natural monopoly
Monopoly profit
equals (price - ATC) times quantity sold
When an industry is a natural monopoly
the economies of scale in it are very great.
The perfect competitor ______ produces at the output at which MC = MR; the monopolist ____ produces at the output at which MC = MR
Always; Always
Which statement is true?
All monopolists are imperfect competitors
Which one of the following companies is NOT a natural monopoly?
The International Nickel Company
A monopolist makes a profit
in both short run and long run
Which statement is true?
A monopolist can lose money
Each of the following is a legal barrier to entry into an industry except
brand names
Which statement is true?
One basis for monopoly is control over an essential resource
Which statement is true?
Monopolies tend to be inefficient.
