ECO 1304 Lecture Notes - Lecture 41: Perfect Competition, Predatory Pricing
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21)
Compared to the results in a perfectly competitive market, a monopoly does which of the following?
It charges a higher price. |
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It charges a price greater than the marginal cost. |
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It produces less output. |
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All of the above |
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None of the above |
22)
"X-inefficiency" refers to the idea that
government restrictions on competition create a monopoly, which results in inefficiency. |
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the cost of rent-seeking activity should be added to the welfare cost of monopoly. |
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Generation X is less efficient due to a lack of competitive spirit. |
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a lack of competitive pressure results in a monopoly not keeping its costs down to the lowest possible level. |
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price discrimination results in inefficiently low cross-elasticities of demand. |
23)
Firms in which of the following market structures can engage in price discrimination?
monopoly |
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oligopoly |
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monopolistic competition |
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All of the above |
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None of the above |
24)
Monopolistic competition and perfect competition are in all of the following ways except
Barriers to entry are low in both |
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There are many firms in both |
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Firms in both produce the output level where MR=MC |
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Nonprice competition is important in both |
25)
To get rid of excess capacity from the monopolistic competition in the long run, what would have to be given up?
Free entry and exit. |
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economic rent |
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resource allocative efficiency |
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differentiated product |
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productive efficiency |