EC2106F08PS15 - Name: _ Class: _ Date: _ ID: A Practice...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Practice Problems for Ch15 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for a. resource monopolies. b. natural monopolies. c. government-created monopolies. d. breaking up monopolies into smaller firms. ____ 2. When a firm operates under conditions of monopoly, its price is a. not constrained. b. constrained by marginal cost. c. constrained by demand. d. constrained only by its social agenda. ____ 3. Because many good substitutes exist for a competitive firm's product, the demand curve that it faces is a. unit-elastic. b. perfectly inelastic. c. perfectly elastic. d. inelastic only over a certain region. ____ 4. As a monopolist increases the quantity of output it sells, the price consumers are willing to pay for the good a. is unaffected.
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EC2106F08PS15 - Name: _ Class: _ Date: _ ID: A Practice...

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