Question

Question 1

The four types of market structures we study in economics are perfect competition, monopolies, oligopolies, and corporations.

True

False

Question 2

Marginal costs will start to fall before average costs start to fall.

True

False

Question 3

A perfectly competitive industry is characterized by a few producers, all producers produce a homogeneous product, and there is free mobility of resources.

True

False

Question 4

One of the objectives of the monopolist is to squeeze out smaller competitors from the market.

True

False

Question 5

Unlike the perfect competitor, who is a price taker, the monopolist is facedwith a demand curve such that he/she can charge whatever price he/shewishes.

True

False

Question 6

A monopolist is different from a perfect competitor by the monopolist'sprice being equal to average revenue.

True

False

Question 7

Average fixed costs diminish continuously as output increases.

True

False

Question 8

The monopolist produces a product for which there are no close substitutegoods.

True

False

Question 9

Economies of scale is when the cost of producing a unit increases as itsoutput rate increases.

True

False

Question 10

The long-run average cost curve will be derived by adding up all the shortrun average total cost curves.

True

False