ch7 - ch7 Student 1 Market power exists if a firm can alter...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ch7 Student: ___________________________________________________________________________ 1. Market power exists if a firm can alter: A. Its costs of production. B. The market price. C. Its own supply curve. D. The production function. 2. If a seafood restaurant can raise the price of its fried shrimp without losing all of its customers, then the restaurant definitely: A. Has market power. B. Is experiencing economies of scale. C. Is using predatory pricing. D. Has a monopoly. 3. Which of the following firms is likely to have the greatest market power? A. A farmer who can sell as much lettuce as he can grow. B. A single soft drink company serving a campus with no barriers to entry. C. The sole producer of the latest computer microchip technology. D. A regulated natural monopoly selling natural gas service. 4. The total quantities of a good that people are willing and able to buy at alternative prices defines: A. Market equilibrium. B. Marginal revenue. C. Market supply. D. Market demand. 5. Which of the following is true about market demand? A. It is typically horizontal or flat. B. It is downward sloping. C. It is inconsistent with the law of demand. D. It represents the quantity of a good people are willing, but not necessarily able, to buy. 6. The demand curve for an individual monopolist: A. Does not exist. B. Slopes upward to the right. C. Is the same as the market demand curve. D. Is the same as the marginal revenue curve. 7. A patent: A. Is a government grant of exclusive ownership of an innovation. B. Requires a firm to share its innovations with others. C. Protects a perfectly competitive firm from competition. D. Is an illegal method to protect an innovative idea. 8. Which of the following might be used to protect a monopoly from competition? A. A horizontal demand curve. B. Marginal revenue. C. A patent. D. A contestable market.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
9. If the entire output of a market is produced by a single seller, the firm: A. Is a monopoly. B. Is competitive. C. Is an oligopolist. D. Faces a perfectly vertical demand curve. 10. An industry dominated by one firm is: A. Monopolistic competition. B. Perfect competition. C. A monopoly. D. An oligopoly. 11. Which of the following is likely to be a monopolist? A. A small firm with a patent granting it the exclusive right to produce a drug. B. A large firm, such as HP, that produces a substantial portion of the printer market. C. Bell Helicopter which is one of the largest producers of helicopters in the world. D. A major car manufacturer such as General Motors. 12. Which of the following is likely to be a monopolist? A. A potato chip company that sells lots of chips and competes with other chip producers. B. A farmer who specializes in growing organic fruits and vegetables. C. The sole producer of a new medical device for people with limited mobility.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 60

ch7 - ch7 Student 1 Market power exists if a firm can alter...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online