#1
In monopolistic competition, firms have:
Low barriers to entry
High barriers to entry
No barriers to entry
Variable barriers to entry
#2
Which of the following is a characteristic of a monopoly market structure?
Many firms producing identical products
A single firm with complete control over the market
A few firms with differentiated products
Perfect information available to all market participants
#3
What is a monopolistic market characterized by?
Many buyers and sellers with homogeneous products
A single seller with a unique product
Few sellers with identical products
Many sellers with differentiated products
#4
What is the main difference between a monopoly and an oligopoly?
Number of firms in the market
Degree of product differentiation
Barriers to entry
Profit maximization strategy
#5
Which of the following is NOT a characteristic of a monopoly?
Unique product
Price taker
Price maker
High barriers to entry
#6
What is a common barrier to entry in a monopoly market?
Perfect competition
Government regulation
Product differentiation
Price transparency
#7
What does MR stand for in the context of monopoly profit maximization?
Marginal Revenue
Market Revenue
Minimum Revenue
Monopolistic Return
#8
In a monopoly, at the profit-maximizing level of output, what is the relationship between marginal revenue (MR) and marginal cost (MC)?
MR = MC
MR > MC
MR < MC
MR varies independently of MC
#9
What is the profit-maximizing rule for a monopolist?
Produce where marginal cost equals average total cost
Produce where marginal cost equals marginal revenue
Produce where marginal cost equals price
Produce where average revenue equals average cost
#10
Which of the following is a potential consequence of monopolies in a market?
Higher consumer surplus
Increased competition
Decreased consumer choice
Lower prices
#11
What does the term 'deadweight loss' refer to in the context of monopolies?
The loss of consumer surplus due to monopoly pricing
The loss of producer surplus due to competition
The loss of efficiency in the market due to monopoly power
The loss of government revenue from monopoly taxes
#12
Which of the following is a characteristic of perfect competition but not monopoly?
Zero economic profit in the long run
Price-setting power
Many buyers and sellers
Product differentiation
#13
Which of the following is NOT a strategy for a monopolist to maintain its market power?
Price discrimination
Limiting output to decrease costs
Creating barriers to entry
Pursuing research and development to innovate
#14
What is a natural monopoly?
A monopoly that arises due to government regulations
A monopoly that emerges due to the absence of competition in the market
A monopoly that results from economies of scale, making it most efficient for one firm to produce the entire output
A monopoly that forms through aggressive takeover strategies
#15
Which of the following statements regarding monopolies is true?
Monopolies always produce at the socially optimal level of output
Monopolies have no incentive to innovate
Monopolies are always illegal
Monopolies may engage in price discrimination to increase profits
#16
What is the primary goal of antitrust laws in the context of monopolies?
To promote the formation of monopolies
To regulate the prices charged by monopolies
To prevent the formation and abuse of monopoly power
To provide subsidies to monopolistic firms
#17
What happens to a monopolist's demand curve compared to the market demand curve?
It is steeper than the market demand curve
It is flatter than the market demand curve
It is identical to the market demand curve
It is nonexistent
#18
Which of the following is a potential solution to the problems associated with monopolies?
Nationalization
Deregulation
Subsidization
Regulation