#1
Which of the following is a characteristic of monopoly pricing?
Numerous sellers
Identical products
Price taker
Single seller
#2
What is the main reason behind a monopoly's ability to set prices?
High barriers to entry
Perfect competition
Government regulation
Low demand elasticity
#3
Which of the following is NOT a barrier to entry for a monopoly?
Legal restrictions
Economies of scale
Perfect information
Control over essential resources
#4
In monopoly pricing, what is the relationship between price and marginal revenue?
Price equals marginal revenue
Price is greater than marginal revenue
Price is less than marginal revenue
Price has no relationship with marginal revenue
#5
Which of the following is a characteristic of a monopolistic market structure?
Many sellers offering identical products
Product differentiation
Price taker behavior
Perfect information
#6
In monopoly pricing, the demand curve is:
Perfectly elastic
Perfectly inelastic
Downward sloping
Horizontal
#7
Which of the following is NOT a method of monopoly pricing?
Marginal cost pricing
Average cost pricing
Peak load pricing
Marginal revenue pricing
#8
What is the relationship between marginal revenue and price in monopoly pricing?
Marginal revenue equals price
Marginal revenue is less than price
Marginal revenue is greater than price
Marginal revenue has no relationship with price
#9
Which of the following is a characteristic of monopolistic competition?
Large number of sellers
Homogeneous products
Price taker
Product differentiation
#10
What is the profit-maximizing rule for a monopolist in terms of marginal cost and marginal revenue?
MC = MR
MC > MR
MC < MR
MC = AR
#11
Which of the following is a potential consequence of monopoly power?
Increased consumer surplus
Increased competition
Deadweight loss
Decreased prices
#12
Which of the following statements is true regarding monopoly pricing and economic efficiency?
Monopoly pricing results in allocative efficiency
Monopoly pricing results in productive efficiency
Monopoly pricing results in neither allocative nor productive efficiency
Monopoly pricing results in both allocative and productive efficiency
#13
What is the relationship between price and quantity sold in a monopolistic market compared to perfect competition?
Higher price, higher quantity
Lower price, lower quantity
Higher price, lower quantity
Lower price, higher quantity
#14
Which pricing strategy involves setting the price low initially to capture market share and then raising it later?
Marginal cost pricing
Peak load pricing
Predatory pricing
Price skimming
#15
What is the main goal of a monopolist engaging in price discrimination?
To maximize consumer surplus
To minimize producer surplus
To increase total revenue
To reduce allocative inefficiency
#16
Which of the following is a type of price discrimination?
Monopoly pricing
Marginal cost pricing
Perfect competition
Third-degree price discrimination