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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

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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

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Economics Mcqs, Monopoly & Competition

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?

Economics Mcqs, Monopoly & Competition /
The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?

A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market
B. Monopolistically competitive firms face a downward-slog demand curve just like competitive firms.
C. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.
D. The products are differentiated in a monopolistically competitive market just like in a competitive market.

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ? Read More »

Economics Mcqs, Monopoly & Competition