Chapter 22 Flashcards
Which statement is false #1?
A. A monopoly is both a firm and an industry.
B. A monopoly is an imperfect competitor
C. There are no monopolies in the United States
D. None of these statements is false
C. There are no monopolies in the United States
Which statement is false #2?
A. the monopolist demand and marginal revenue curves are two seperate curves.
B. The monopolist can sell more output only by lowering price.
C. The monopolist produces tat the minimum point of her ATC curve.
D. None of these statements is false
C. The monopolist produces tat the minimum point of her ATC curve.
Which statement is true #1
A. All monoolists products have close substitutes.
B. Most firms in the US are monopolies.
C. There are no monopolies in the US
D. A monopoly is a fim that produces all the output in an industry.
E. Non of these is true.
D. A monopoly is a fim that produces all the output in an industry.
The monoploist produces
A. where MC=MR
Which statement is true #2?
A. The monopolist cannot lose money.
B. The monopolist alwasys operates a large firm.
C. The monopolist will not lose money in the short run.
D. The monopolist will not lose money in the long run.
D. The monopolist will not lose money in the long run.
The most efficient output is found
B. at the bottom of the ATC curve
An example of the government ownership of a monopoly would be
A. the Tennessee Valley Authority
Which statement is true #3?
A. The monopolist’s most effiecient output is her most profitable output as well.
B. The monopolist charges a higher price than the perfect competitor in the long run.
C. All Monopolist have control over an essential resource.
D. None are true.
B. The monopolist charges a higher price than the perfect competitor in the long run.
Which statement is true #4?
A. All monopolises are very large firms.
B. Most monopolists do not produce at an output in which MC=MR.
C. The monopolist’s demand curve and MR curve are identical.
D. None is true
D. None is true
A monopolist operates at the minimum point of her ATC curve
D. 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
A. the avereage cost of producting the good will increase
In the United States, natural monopolies
C. are commonly regulated by governments
Patents function to
B. temporarily protect monopoly power
Monopoly firms are
C. sometimes very large
A public utility would be an example of
A. a natural monopoly
Monopoly profit
A. equals (price-ATC) times quantity sold
When an industry is a natural monopoly
A. 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.
A. Always;always
Which statement is true #5?
A. Some monopolists are imperfect competitors.
B. Most monopolists are imperfect competitors.
C. All monopolists are imperfect competitors.
D. None is true.
C. All monopolists are imperfect competitors
Which one of the following companies is NOT a natural monopoly?
A. The Internation Nickel Company
A monopolist makes a profit
C. in both the short and long run
Which statement is true #6?
A. Since the monopolist is the only firm in the industry, her profit is calculated differently from the way a perfect competitor would calculate his profit.
B. The monopolist’s demend curve and marginal revenue curve are the same line.
C. In the long run under monopoly, the most efficient output is the most profitable output.
D. A monopolist can lose money
D. A monopolist can lose money
Each of the following is a legal barrier to entry into an industry except
D. brand names
Which statement is true #7?
A. One basis for monopoly is control over an essential resource.
B. Monopoly is illegal in the US
C. The economies of being established is the same as economies of scale.
D. General Motors is a monopoly.
A. One basis for monopoly is control over an essential resource.
Which statement is true #8?
A. Monoplies tend to be inefficient.
B. Most industries in the US are monopolies
C. All electric power companies are natural monopolies that do not have competition.
D. Although big business has great economic power, that power is reaely translated into political.
A. Monoplies tend to be inefficient.
