#1
Which characteristic defines a monopoly market structure?
Many sellers and buyers
Single seller and many buyers
Few sellers and many buyers
Many sellers and single buyer
#2
Which government body is often responsible for regulating monopolies to prevent anti-competitive behavior?
Environmental Protection Agency (EPA)
Federal Reserve System
Federal Trade Commission (FTC)
National Aeronautics and Space Administration (NASA)
#3
Which type of monopoly occurs when a single firm dominates the entire production process of a good or service?
Legal monopoly
Natural monopoly
Vertical monopoly
Horizontal monopoly
#4
In a natural monopoly, what factor contributes to lower average costs as production scales up?
Economies of scale
Diseconomies of scale
Marginal cost fluctuations
Fixed costs
#5
What is a strategic barrier to entry that may be employed by a monopolist?
High production costs
Low advertising expenses
Collaborative partnerships
Frequent product innovations
#6
What is a key feature of a monopoly market regarding entry and exit?
Easy entry and exit
Difficult entry and exit
Moderate entry and exit
No entry and exit allowed
#7
Which pricing strategy is commonly associated with a monopoly?
Perfect competition pricing
Marginal cost pricing
Price discrimination
Cost-plus pricing
#8
What is a natural monopoly, and what industry is commonly associated with it?
A monopoly formed through mergers
A monopoly arising from economies of scale
A monopoly due to government intervention
A monopoly based on innovative products
#9
Which pricing strategy involves setting a low initial price to attract customers and gain market share quickly?
Penetration pricing
Skimming pricing
Cost-plus pricing
Dynamic pricing
#10
What is the term for a situation where a monopoly firm charges different prices for the same product to different customers based on their willingness to pay?
Price fixing
Collusion
Predatory pricing
Price discrimination
#11
What is the primary barrier to entry in a monopoly market?
Low production costs
High competition
High initial investment
Government regulations
#12
In a monopoly, what happens to the elasticity of demand for the monopolist's product?
Elasticity decreases
Elasticity increases
Elasticity remains constant
Elasticity becomes perfectly elastic
#13
What is a potential disadvantage of monopolies for consumers?
Increased competition
Lower prices
Limited choice and higher prices
Innovation and variety
#14
How does a monopoly impact the incentive for innovation compared to a competitive market?
Encourages innovation
Discourages innovation
No impact on innovation
Innovation is solely government-driven
#15
What is the main goal of a monopolist when practicing price discrimination?
Maximizing total revenue
Equalizing marginal cost and marginal revenue
Ensuring consumer surplus
Maximizing consumer welfare