Chapter_13 - YourResultsfor:"SelfStudyQuiz" Printthispage...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 13 > Self-Study Quiz Date/Time  Submitted: February 7, 2012 at 11:46 AM  (UTC/GMT) Summary of Results 43% Correct  of 40 Scored items: 17 Correct:  43% 23 Incorrect:  58% 6 questions not scored. 40 scored questions. More information about scoring 1. Imperfect competition is a term used  to describe market structures in  which:  Your Answer:   Correct. A market, or industry, in which individual firms have some control over the price  of their output, is imperfectly competitive. All firms in an imperfectly competitive market  have one thing in common: They exercise market power, the ability to raise price without  losing all of the quantity demanded for their product. 2. Which of the following market  structures has a small number of  firms, each large enough to have an  impact on the market price of its  outputs? Your Answer: Monopoly. Correct Answer: Oligopoly.   Incorrect. There’s only one firm in a monopoly.
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3. When is a monopolist able to  exercise market power?  Your Answer:   Correct. The more broadly a market is defined, the more difficult it becomes to find  substitutes. 4. Fill in the blanks. The more broadly  defined an industry is, the _______  the amount of substitutes available,  and the _______ elastic demand for  that industry’s products is likely to  be. Your Answer: greater, less Correct Answer: fewer, less   Incorrect. There are fewer substitutes for food, for example, than there are for hamburger. 5. Which of the following is the more  precise definition of  pure monopoly Your Answer: A monopoly by virtue of governme Correct Answer: An industry with a single firm that are no close substitutes, and in w to entry.   Incorrect. This is the definition of a government franchise.
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6. Which of the following constitutes a  barrier to entry in imperfectly  competitive markets? Your Answer: Ownership of a scarce factor of pr Correct Answer: All of the above.   Incorrect. This answer is correct, however, other choices are also correct. 7. Which of the following decisions has  to be made by an imperfectly  competitive firm but not by a  perfectly competitive firm? Your Answer:   Correct. Price is not taken as given but it is a decision variable. Firms with market power  must decide not only (1) how much to produce, (2) how to produce it, and (3) how much  to demand in each input market, but also (4) what price to charge for their output. 8.
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This note was uploaded on 02/09/2012 for the course ECONOMY 101 taught by Professor Zaier during the Spring '11 term at Qatar University.

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Chapter_13 - YourResultsfor:"SelfStudyQuiz" Printthispage...

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