MGEA02H3 Lecture : Lecture notes week 7

the demand curve facing a monopolist is:

a. vertical, the same as that facing a perfectly competitive firm

b. downward-sloping, like the industry demand curve in perfect competition

c. perfectly inelastic, the same as that facing a perfectly competitive firm

d. upward-sloping, the same as that facing a perfectly competitive firm

The demand curve facing a monopolist is:

a. vertical, the same as that facing a perfectly competitive firm

b. downward-sloping, like the industry demand curve in perfect competition

c. perfectly inelastic, the same as that facing a perfectly competitive firm

d. upward-sloping, the same as that facing a perfectly competitive firm

1. Which market structure is characterized by a few interdependent firms?

A) Monopoly.

B) Perfect competition.

C) Monopolist competition.

D) Oligopoly.

2. The correct ranking (put in order) of the degree of market power (from highest to lowest) is

A) Monopoly, monopolistic competition, perfect competition, oligopoly

B) Monopoly, monopolistic competition, oligopoly, perfect competition.

C) Monopoly, oligopoly, monopolistic competition, perfect competition.

D) Oligopoly, monopoly, monopolistic competition, perfect competition.

3. The term monopolistic competition

A) is an alternate expression for monopoly

B) is used to describe perfect competition with strong entry barriers.

C) denotes an industry with one seller of many differentiated products

D) denotes an industry with many sellers of differentiated products.