Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Author name: admin

Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?

Economics Mcqs, Monopoly /
Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?

A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost

Which of the following statements about price and marginal cost in competitive and monopolized markets is true ? Read More »

Economics Mcqs, Monopoly

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?

Economics Mcqs, Monopoly /
When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?

A. below the price because the price effect outweighs the output effect
B. above the price because the output effect outweighs the price effect
C. above the price because the price effect outweighs the output effect
D. below the price because the output effect outweighs the price effect

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ? Read More »

Economics Mcqs, Monopoly

Which of the following is not a barrier to entry in a monopolized market ?

Economics Mcqs, Monopoly /
Which of the following is not a barrier to entry in a monopolized market ?

A. A single firm is very large
B. The government gives a single firm the exclusive right to produce some good
C. The costs of production make a single producer more efficient than a large number of productions
D. A key resource is owned by a single firm

Which of the following is not a barrier to entry in a monopolized market ? Read More »

Economics Mcqs, Monopoly

Which of the following is not put forth as a criticism of advertising and brand names ?

Economics Mcqs, Monopoly & Competition /
Which of the following is not put forth as a criticism of advertising and brand names ?

A. Advertising manipulates people’s tastes to create a desire that otherwise would not exist
B. Advertising increase competition Which causes unnecessary bankruptcies and layoffs.
C. Advertising increases brand loyalty causes demand to be more inelastic and thus, increase mark-up over marginal cost.
All of these answers are criticisms of advertising and brand names

Which of the following is not put forth as a criticism of advertising and brand names ? Read More »

Economics Mcqs, Monopoly & Competition

Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?

Economics Mcqs, Monopoly & Competition /
Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?

A. the producer of a highly differentiated consumer product
B. the manufacturer of an undifferentiated consumer commodity
C. a perfect competitor
D. The manufacturer of an industrial product
E. The producer of a low-quality product that costs the same to produce as a similar high-quality product

Which of the following firms is most likely to spend a large percentage of their revenue on advertising ? Read More »

Economics Mcqs, Monopoly & Competition