Monopoly Market Structure and Economic Welfare Quiz Explore key concepts of monopoly market structure & its impact on economic welfare. Test your knowledge with 12 quiz questions on industrial organization.
#1
#2
Perfect competition
Single seller
Many buyers and sellers
Homogeneous products
#3
Low production costs
Perfect information
Government regulations
Many substitutes
#4
Increases consumer surplus
Decreases consumer surplus
No impact on consumer surplus
Cannot be determined
#5
Charging the same price to all consumers
Setting a single price for different products
Charging different prices to different groups of consumers
Constantly changing prices
#6
Tax incentives
Deregulation
Anti-trust laws
Subsidies
#7
Many firms producing similar products
Economies of scale favoring a single large producer
Perfect competition
Low entry barriers
#8
The loss of profits for the monopolist
The loss of consumer surplus and producer surplus
The loss of government revenue
The loss of market share
#9
Monopoly always achieves allocative efficiency
Monopoly achieves allocative efficiency under perfect competition
Monopoly never achieves allocative efficiency
Monopoly and allocative efficiency are unrelated
#10
They lead to overproduction
They result in excess competition
They reduce overall economic welfare
They promote income equality
#11
Setting marginal cost equal to marginal revenue
Producing where average cost is minimum
Producing where marginal cost is maximum
Shutting down production
#12
Inefficiency due to duplication of resources
Difficulty achieving economies of scale
Excessive competition
Monopoly pricing leading to reduced consumer surplus
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