#1
In a monopoly market structure, who has control over the market supply?
Multiple firms
One firm
Government agencies
Consumers
#2
What is the primary characteristic of a monopoly market structure?
Many firms selling similar products
Easy entry and exit of firms
Single seller with significant market power
Perfect competition
#3
What is a potential disadvantage of a monopoly to consumers?
Higher prices
Greater product variety
More consumer choice
Decreased innovation
#4
What is a barrier to entry in a monopoly market?
Low startup costs
High competition
Government regulation
Many substitutes available
#5
What is a common government policy to regulate monopolies?
Subsidizing monopolies
Imposing price ceilings
Encouraging collusion
Removing all regulations
#6
What is the term used to describe a monopoly firm's ability to set its own price?
Price competition
Price collusion
Price discrimination
Price control
#7
What is a common example of a natural monopoly?
Internet service providers
Fast-food restaurants
Movie theaters
Farming
#8
How does a monopoly firm maximize profit in the short run?
By producing where marginal cost equals marginal revenue
By producing where average cost equals average revenue
By producing until marginal cost exceeds marginal revenue
By producing where total revenue exceeds total cost
#9
What is a natural monopoly?
A monopoly created by government regulations
A monopoly that arises due to economies of scale
A monopoly controlled by a single firm with patents
A monopoly formed by merging multiple firms
#10
What is price discrimination in a monopoly market?
Setting different prices for different products
Charging the same price to all customers
Selling products at a loss
Colluding with competitors to fix prices
#11
How does a monopoly firm's long-run equilibrium compare to perfect competition?
The price is lower and output is higher in a monopoly
The price is higher and output is lower in a monopoly
The price and output are the same in both
There is no long-run equilibrium in a monopoly
#12
What is the profit-maximizing condition for a monopoly firm in the long run?
MR = MC
AR = AC
MC = AC
MR = AC
#13
What is a natural consequence of price discrimination in a monopoly?
Increased consumer surplus
Decreased producer surplus
Reduction in deadweight loss
Increased social welfare
#14
What is a characteristic of a monopolistically competitive market?
Many firms selling identical products
High barriers to entry
Firms producing at the efficient scale
Product differentiation
#15
Why might a monopoly firm have a downward-sloping demand curve?
Because it faces competition from other firms
Because consumers are price takers
Because it has control over the market supply
Because it operates in a perfectly competitive market
#16
How do economies of scale contribute to the existence of a natural monopoly?
They lead to higher prices for consumers
They allow one firm to produce at lower average costs than multiple firms
They encourage the entry of new competitors
They result in excess capacity
#17
How does a monopoly firm's pricing behavior differ from that of a perfectly competitive firm?
Monopoly charges a lower price
Monopoly charges a higher price
Monopoly and perfect competition have the same pricing behavior
Monopoly does not consider marginal cost in pricing
#18
What is a limitation of using the profit-maximizing rule for monopolies?
It ignores consumer preferences
It does not consider fixed costs
It assumes perfect information
It overlooks the impact of government regulations
#19
What effect does a monopoly have on economic efficiency compared to perfect competition?
Increases economic efficiency
Decreases economic efficiency
Has no effect on economic efficiency
Leads to perfect economic efficiency