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1)Which of the following is true about the Sherman Act?

 

A.It prohibited price discrimination.

  
 

B. It prohibited price-fixing and collusion.

  
 

C. It prohibited mergers if it led to weakened competition.

  
 

D. It made engaging in predatory activities illegal.

  
 

E. It encouraged firms to take advantage of the patent system.

2)
Which of the following is true of price discrimination?

 

A. Customers need to differ in their willingness to pay for price discrimination to occur.

  
 

B. Customers need to have a unit elastic demand curve for price discrimination to occur.

  
 

C. Price discriminators profit by charging a uniform price to all customers.

  
 

D. Price discriminators lack the incentive to reduce their average total cost of production.

  
 

E. Customers can easily resell a good to other customers if there exists price discrimination in the market for the good.

  

3) Which of the following types of firms do not practice price discrimination?

  A. Airlines  
  B. Movie theaters  
  C. Soft drink companies  
  D. Colleges  
  E. Amusement parks

4) Oligopoly, like perfect competition, is a market structure in which firms can easily enter and leave the industry.

a. True

  

b. False

  

 

5)

Monopolistic competition is characterized by:

 

A. A large number of firms selling differentiated products.

  
 

B. A perfectly elastic demand curve.

  
 

C. High barriers to entry.

  
 

D. large number of firms selling identical products.

  
 

E. A small number of firms selling differentiated products.

  

6) Which of the following is not a source of product differentiation?

  A. Prestige considerations in products  
  B. Differences in the cost of production of products  
  C. Physical differences in products  
  D. Differences in the services provided by firms  
  E. Differences in the location of sales outlets  

7) The restaurants in San Francisco can probably be categorized as examples of firms

  A. operating in an oligopolistic market.  
  B. operating in a monopolistically competitive market  
  C. operating in a perfectly competitive market  
  D. forming a cartel.  
  E. Operating in a monopolistic market  

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Retselisitsoe PokothoaneLv10
28 Sep 2019
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Related questions

1. if the government attempts to break up a natural monopoly to enforce competition in an industry

A. the average cost of producing the good will increase

B. the smallest firm will have a significant cost advantage over the larger, less efficient firms

C. the average cost of producing the good will decrease

D. the price paid by consumers will be expected to remain the same.

2. which statement is true?

A. the monopolistic competitor always makes a profit in the short run

B. the monopolistic competitor operates at peak efficiency

C. product differentiation takes place in the minds of the buyers

D. none of these statements is true

3. Price discrimination

A. occurs when a good or service is resold

B. is prohibited by law

C. occurs when a seller charges two or more prices for the same good or service

D. occurs when the seller charges different prices for different quality products

4. Monopolistic competition may lead to each of the following except

A. inefficiency

B. overdifferentiation

C. overcapacity

D. monopoly profits

5. In the long run in monopolistic competition

A. most firms are making a profit

B. the absence of entry barriers ensures that there are no profits

C. economies of scale ensure that there are no profits

D. most firms are losing money

6. Price discrimination means

A. charging different prices for identical goods that have identical production costs

B. paying wages according to race or sex rather than productivity

C. exploiting the working masses by charging the highest single price possible.

D. eliminating all costs so that only pure profits are realized

7. The definition of monopolistic competition includes

A. few firms and ease of entry and exit

B. few firms and barrieres to entry and exit

C. many firms and barriers to entry and exit

D. many firms and ease of entry and exit

8. Which statement is true?

A. there are many firms in a monopolistically competitive industry.

B. monopolistic competitors produce an identical product

C. in order for product differentiation to take place, there must be clear physical differences amont the products sold

D. none is true

9. Long-run equilibrium for firms in monopolistically competitive industries is similar to that for firms in perfect competition in that

A. price equals minimum possible average total cost

B. price equals marginal cost

C. marginal revenue equals average total cost

D. price equals average total cost

10. Which statement is false?

A. Oligopolies are illegal in most states

B. most oligopolies engage in outright collusion

C. Ford motor company is an oligopoly

D. none of these statements is false

When a monopoly lowers its price to increase quantity,

a. The quantity produced drives down marginal revenue

b. It will increase its profits

c. It will make less money on the units it would have orginally sold

d. It is not maximizing its profit

Which of the following statements is TRUE?

a. Both A and B

b. A monopoly can charge whatever it wants

c. Profit maximizatin occurs by setting price first

d. A monopoly cannot set price and quantity such that the point lies above the demand curve

A monopoly that is maximizing profits operates is the _______ portion of the demand curve

a. Unitary elastic

b. Horizontal

c. Elastic

d. Inelastic

A monopoly shuts down when,

a. The long run price is below its average variable cost

b. Never, because it can raise its prices as high as necessary to keep operating and maximizing profits

c. The short run price is below its average variable cost

d. The average cost is less than price

The ability of a monopoly to charge a price that exceeds marginal cost depends on,

a. Shape of the marginal cost curve

b. The price elasticity of supply

c. Price elasticity of demand

d. Slope of the demand curve

Which of the following could create a cost advantage for a monopoly?

a. Lower friction due to better organization

b. Better technology

c. All of the above

d. Standardization

Price discrimination,

a. Is illegal in the U.S.

b. Is when consumers use prices to discriminate between different quality products

c. Is a form of pricing where consumers pay different prices for a good

d. Allows firms to set a single intermediate price between consumers' low and high willingness to pay

Which of the following is likely hardest to resell?

a. The free facial you won at a raffel

b. An apple iPod

c. A coupon for a free haircut

d. A discount airline tickey you bought with your frequent flyer miles

If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities; then,

a. Consuers who buy larger quantities have a higher price elastiity of demand

b. Consumers who buy smaller quantities have a lower price elasticity of demand

c. Both A and C

d. Consumers who buy larger quantities have a lower price elasticity of demand

Purchasing a season pass t the local symphony,

a. Is an example of third degree price discrimination

b. Is an example of second degree price discrimination

c. Is an example of first degree price discrimination

d. All of the above

1. In the market structure called monopolistic competition (Points : 1.25)
a) Very little advertising will occur
b) There are only a few companies in the industry
c) These industries offer only few products
d) None of the above
Question 2.2. In a purely competitive industry (Points : 1.25)
a) Products are differentiated
b) A large amount of advertising occurs
c) Price will be higher than in other market structure
d) None of the above
Question 3.3. A used lawn mower is an example of (Points : 1.25)
a) a search good
b) an experience good
c) a homogenous good
d) None of the above
Question 4.4. The problem of asymmetric can be overcome by (Points : 1.25)
a) Reputation
b) Brand name
c) Warranties
d) All of the above
e) None of the above
Question 5.5. A monopolist will always charge a higher price than a purely competitive industry (Points : 1.25)
True
False
Question 6.6. Given TC = 10 + 5Q, Ed = -2, what price will be a monopolist charge? (Points : 1.25)
a) 5
b) 12
c) 8
d) 10
e) None of the above
Question 7.7. The monopolist determines optimal output the same way as does a purely competitive industry (Points : 1.25)
True
False
Question 8.8. Given a company with some monopoly power and Ed=3, the optimal markup is (Points : 1.25)
a) 33%
b) 50%
c) 72%
d) None of the above
Question 9.9. Given the information given in 8 above and MC=6, gross margin is (Points : 1.25)
a) 50%
b) 42%
c) 33%
d) 38%
e) None of the above
Question 10.10. You would expect gross margin in a store brand to be higher than gross margin in a brand name product (Points : 1.25)
True
False
Question 11.11. You expect products that are less price elastic to have lower gross margins than products with greater price elasticity (Points : 1.25)
True
False
Question 12.12. A company with large gross margins will have large profits (Points : 1.25)
True
False
Question 13.13. If a company is incurring losses, it should stop operating (Points : 1.25)
a) Yes
b) No
c) Not enough information
Question 14.14. A monopolist may not charge the highest price they could get (at MR=MC) in the short run (Points : 1.25)
True
False
Question 15.15. All price discrimination is illegal (Points : 1.25)
True
False
Question 16.16. A company that faces different levels of demand (different price elasticities) (Points : 1.25)
a) Must charge the same price to all customers
b) is violating the law
c) Can charge different price to customers
Question 17.17. Patents allow a company the exclusive right to act as a monopolist (Points : 1.25)
a) This is not justified economically
b) It is justified economically
Question 18.18. The kinked demand curve model was developed to help explain: (Points : 1.25)
a) fluctuations of prices in pure competition
b) rigidities observed in prices in oligopolistic industries
c) fluctuations observed in prices in oligopolistic industries
d) all of the above
e) none of the above
Question 19.19. If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the _____ of all firms is identical. (Points : 1.25)
a) average total cost
b) average profit
c) marginal profit
d) marginal cost
e)marginal revenue
Question 20.20. Factors that affect the ability of oligopolistic firms to successfully engage in cooperation include_________________. (Points : 1.25)
a) number and size distribution of sellers
b) size and frequency of orders
c) product heterogeneity
d) a and b only
e) a, b, and c

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