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- 1. Multiple Choice
What is an economic monopoly?
A board game in which players engage in simulated property and financial dealings using imitation money. It was invented in the US and the name was coined by Charles Darrow c. 1935
The exclusive possession or control of the supply of or trade in a commodity or service
Something legal
An economic system in which prices are determined by unrestricted competition between privately owned businesses
- 2. Multiple Choice
Monopoly occurs when there is a single _____ in the market of a certain good.
Household
Buyer
Producer
Consumer
Industry
- 3. Multiple Choice
The average price of mobile phones suddenly drops by $30. Which of these possibilities would not be true as a result?
There was a major technological advance
The supply curve for the mobile phone industry would shift to the right
Demand for landlines (home phones) would increase
Demand for mobile phones would increase
- 4. Multiple Choice
Which of the following companies are not monopolies?
McDonalds
Simmons Pet Food
Microsoft
Google
- 5. Multiple Choice
Which of the following are true in monopoly?
The monopolist can set price and output
The demand curve for the firm and the market are the same
The monopolist protect their position through barriers to entry
- 6. Multiple Choice
Which of the following is not true of monopolists?
Monopolists seek to maximize profits
Monopolists can raise price more than 10 percent
Monopolists can charge any price they want and make a profit
The entry of new firms is not a major concern
- 7. Multiple Choice
When you go to the movies, the theater is a monopoly vendor of popcorn while you're there (why it costs so much). Suppose that the cost to the theater of fake butter flavoring and yellow food coloring rise significantly, what will happen to the price and quantity of popcorn sold by the theater?
The price of popcorn will rise and the quantity sold will increase
The price of popcorn will rise and the quantity sold will fall
The price of popcorn will remain unchanged and the quantity sold will remain unchanged
The price of popcorn will fall and the quantity sold will fall
- 8. Multiple Choice
A monopoly requires
Products that are high priced
Several close substitutes for the product
A unique product with no close substitutes
That the product cannot be produced by small firms
- 9. Multiple Choice
When one firm in an industry can serve the entire market at a lower cost than if there were many firms in the industry, it would be a(n) ...
Pure monopoly
Natural monopoly
Devised monopoly
Oligopoly
- 10. Multiple Choice
All the following serve as barriers to entry into a market, EXCEPT...
patents
technology
low start up costs
marketing budgets
- 11. Multiple Choice
An industry dominated by a few firms is called a ...
monopolistic competition
monopoly
oligopoly
perfect competition
- 12. Multiple Choice
An illegal practice of firms in an oligopolistic market working together to set prices is called ...
collusion
competitive pricing
monopolistic competition
priceline negotiation
- 13. Multiple Choice
The most recognizable form of non-price competition used by oligopolies is ...
more locations
advertising
better customer service
low prices
- 14. Multiple Choice
Competition promotes innovation
True
False
- 15. Multiple Choice
The market structure with the most control over price and as a result, the highest prices if not regulated, is...
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
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