ch14 - ch14 class name student ID _ 1. _ 2. _ 3. _ 4. _ 5....

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ch14 class name student ID Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is not a characteristic of a monopoly? a. barriers to entry b. one seller c. one buyer d. a product without close substitutes ____ 2. The fundamental source of monopoly power is a. barriers to entry. b. profit. c. decreasing average total cost. d. a product without close substitutes. ____ 3. Which of the following is an example of a barrier to entry? a. Tom charges a higher price than his competit- ors for his house-painting services. b. Dick obtains a copyright for the new com- puter game that he invented. c. Harry offers free concerts on Sunday after- noons as a form of advertising. d. Larry charges a lower price than his competit- ors for his lawn-mowing services. ____ 4. Which of the following is a characteristic of a natural monopoly? a. Marginal cost declines over large regions of output. b. Average total cost declines over large regions of output. c. The product sold is a natural resource such as diamonds or water. d. All of the above are correct. ____ 5. Because a monopolist must lower its price in order to sell another unit of output, a. marginal revenue is less than price. b.
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This note was uploaded on 03/15/2011 for the course ECON 101 taught by Professor Drwang during the Spring '11 term at National Taiwan University.

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ch14 - ch14 class name student ID _ 1. _ 2. _ 3. _ 4. _ 5....

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