C7_Pre-Test - Pre-Test...

Pre-Test
(See related pages)
1
A(n) _____ is a firm that produces the entire market supply of a particular good or service.
A)
monopoly
B)
duopoly
C)
oligopoly
D)
None of the above is true.
2
The demand curve facing a monopolist is:
A)
upward sloping.
B)
downward sloping.
C)
vertical.
D)
horizontal.
3
In order for a monopolist to sell another good, price must be decreased, so marginal revenue will:
A)
increase.
B)
decrease.
C)
stay the same.
D)
equal zero.
4
For a monopolist, marginal revenue is always _____ price.
A)
equal to
B)
greater than
C)
less than
D)
None of the above is true.
5
A monopolist maximizes profit at the rate of output where marginal revenue _____ marginal cost.
A)
equals
B)
is greater than
C)
is less than
D)
None of the above is true.
6
The price the monopolist charges in order to maximize profit is:
A)
the highest possible price.
B)
the lowest possible price.
C)
found from the demand curve.
D)
None of the above is true.
7
Which of the following are examples of barriers to entry?