#1
In economics, what is a monopoly?
A market structure with a single seller and many buyers
ExplanationSingle seller dominates the market.
#2
Which of the following is NOT a characteristic of a monopoly?
Homogeneous products
ExplanationMonopolies often offer differentiated products.
#3
Which of the following is NOT a type of monopoly?
Competitive monopoly
ExplanationMonopolies inherently lack competition.
#4
What is a natural monopoly?
A monopoly that exists due to economies of scale
ExplanationArises from efficiency in large-scale production.
#5
Which government agency in the United States is responsible for regulating monopolies and preventing anticompetitive behavior?
Federal Trade Commission (FTC)
ExplanationFTC oversees antitrust laws and competition.
#6
What is the term for a market structure with only a few sellers offering similar or identical products?
Oligopoly
ExplanationSmall number of firms control the market.
#7
What is a price discrimination strategy often employed by monopolies?
Perfect price discrimination
ExplanationCharging each customer their maximum willingness to pay.
#8
What is the term for a monopoly that has complete control over the production of a good or service?
Pure monopoly
ExplanationSole producer in the market.