Economics Mcqs

A. some degree of monopoly power
B. an ability to separate the market
C. an ability to prevent reselling
D. all of the above

A. economies of scale
B. a high proportion of the total cost in the cost of capital goods
C. the market is very small
D. all of the above

A. 1
B. 2
C. 3
D. 4
E. 5

A. marginal revenue equals average total cost
B. Price equals marginal revenue
C. marginal revenue equals marginal cost
D. total revenue equals total cost

A. One seller of the product
B. low barriers to entry
C. close substitute products
D. perfect information

A. there is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. the monopolist is financially powerful.
D. antitrust laws eliminate competitors for a specified number of years.
E. of all of the things described in these answers

A. Perfect price discrimination generates a deadweight loss
B. Price discrimination can raise economic welfare.
C. price discrimination requires that seller be able to separate buyers according to their willingness to pay.
D. Price discrimination increases a monopolist’s profits.
E. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.

A. Increase competition in an industry by preventing mergers and breaking up large firms.
B. regulate the prices charged by a monopoly
C. increase merger activity to help generate synergies that reduce costs and raise efficiency.
D. create public ownership of natural monopolies
E. all of these answers

A. does not exist
B. is the marginal cost curve above average variable cost?
C. is the marginal cost curve above average total cost
D. is the upward-slog portion of the average total cost curve
E. The upward-slog portion of the average variable cost

A. underproduction of the good
B. the monopoly’s profits
C. the monopoly’s losses
D. overproduction of the good