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problem_set_on_ch13_14_15

problem_set_on_ch13_14_15 - Exam Name MULTIPLE CHOICE...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An ice cream seller raises the price of its ice cream by 12 percent and observes that the quantity demanded of ice cream just falls by only 7 percent. What can we say about the ice cream producer? 1) A) The ice cream seller can not have any impact on the quantity of ice cream sold in the market. B) The ice cream seller decreases its marginal cost. C) The ice cream seller has some market power. D) The ice cream seller increases its total cost. E) The ice cream seller has some output power. 2) A natural monopoly exists when 2) 3) The ________ substitutes for a good, the ________ a monopolist has market power to set the market price of the good. 3) 4) Which one of the following is an example of a possible natural barrier to entry of new firms into an industry? 4) 1
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Use the figure below to answer the following question(s). Figure 12.5 5) Refer to Figure 12.5 At the profit maximum point for a single - price monopoly, output is ________ units per day and the price is $________ per unit. 5) A) 20; 75 B) 40; 50 C) zero; 0 D) 20; 20 E) 20; 50 6) An activity with the purpose of creating a monopoly is 6) 2
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Use the figure below to answer the following question(s). Figure 12.7
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