ECO 405 Week 7 Quiz – StrayerClick on the Link Below to Purchase A+ Graded Course MaterialQuiz 6 Chapter 8 and 9The Economics Of Monopoly Power: Can Markets Be Controlled?Multiple Choice Questions1. Imperfect Competition Can Best Be Described As A Situation In Which A. A Few Large Firms Produce And Sell A Particular ProductB. Many Firms Produce And Sell A ProductC. Only One Firm Produces And Sells A ProductD. Firms Exercise Some Monopoly PowerE. Both (A) And (D)2. The Monopoly Power Of A Firm Can Be Measured By The Firm's A. Profits Relative To Other Firms In The IndustryB. Control Over The Demand For Its ProductC. Revenues As A Percent Of Industry RevenuesD. Prices Compared To Average Prices In The IndustryE. Control Over The Market Supply Of Its Product 3. Which Of The Following Is Likely To Have The Most Monopoly Power? A. Ford Motor CorporationB. Your Local Water CompanyC. Mobil Oil CorporationD. Avon Products (Cosmetics)E. A Fast Food Restaurant4. Concentration Ratios Are Used To Measure The A. Potential Monopoly Power Within An IndustryB. Strength Of The Demand For An Industry's ProductC. Potential Monopoly Power Of A FirmD. Degree Of Competition Between Firms In Different MarketsE. Level Of Perfection In A Competitive Market
5. Suppose The U.S. Auto Industry Sells 1,000 Autos Per Year. Of This, Gm Sells 400,Ford 300, And Dodge 250. Given This Information, The Four-Firm Concentration Ratio Of The Industry Must Be At Least Questions 06 - 08 Refer To The Table Below.6. The 4-Firm Concentration Ratio In This Industry Is A. 0.5B. 0.6C. 0.7D. 0.8E. 0.97. The 6-Firm Concentration Ratio In This Industry Is
8. Assume That No Firm In This Industry Accounts For Less Than 5% Of Industry Sales. What Is The Largest Number Of Firms That Could Be In This Industry? 9. Which Of The Following Would Cause An Industry's Concentration Ratio To MakeIt Appear Less Competitive Than It Really Is? A. Firms In The Industry Are Located In One Area Of The CountryB. Transporting The Industry's Output Is Very EasyC. Foreign Firms Export The Industry's Product To The United StatesD. High Barriers To EntryE. All Of The Above10. A Pure Monopoly Industry Has A 4-Firm Concentration Ratio Equal To A. 0B. 0.25C. 050D. 0.9E. 1.0
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- Spring '14