CHAPTER 24 - CHAPTER 24 1. Pure monopoly means: A) any...

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CHAPTER 24 1. Pure monopoly means: A) any market in which the demand curve to the firm is downsloping. B) a standardized product being produced by many firms. C) a single firm producing a product for which there are no close substitutes. D) a large number of firms producing a differentiated product. 2. Pure monopolists may earn economic profits in the long run because: A) of advertising. B) marginal revenue is constant as sales increase. C) of barriers to entry. D) of rising average fixed costs. 3. Which of the following is a characteristic of pure monopoly? A) close substitute products B) barriers to entry C) the absence of market power D) "price taking" 4. A natural monopoly occurs when: A) long-run average costs decline continuously through the range of demand. B) a firm owns or controls some resource essential to production. C) long-run average costs rise continuously as output is increased. D) economies of scale are obtained at relatively low levels of output. 5. What do economies of scale, the ownership of essential raw materials, and patents have in common? A) They must all be present before price discrimination can be practiced.
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This note was uploaded on 10/15/2009 for the course ECON 2302 taught by Professor Parker during the Spring '09 term at University of Texas-Tyler.

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CHAPTER 24 - CHAPTER 24 1. Pure monopoly means: A) any...

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