econ9 - Pure Competition ANSWERS TO END-OF-CHAPTER...

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Submitted by Le, Thao (THAOLE2) on 11/7/2011 11:04:01 PM Points Awarded 20.00 Points Missed 0.00 Percentage 100% 1. A market served by only one firm is called a(n): A) perfectly competitive market. B) monopoly. C) oligopoly. D) Any of the above could be correct. Points Earned: 0.5/0.5 Correct Answer(s): B 2. A firm that has market power has the ability: A) to affect the price of its own product. B) to conduct illegal activities without fear of prosecution. C) to command consumer to buy any quantity from them. D) to drive its competition out of the market. Points Earned: 0.5/0.5 Correct Answer(s): A 3. Which of the following is NOT a characteristic of a monopoly?
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A) There is only one seller. B) A monopolist is a price-taker. C) There exist barriers to entry. D) A monopolist's sales revenue is constrained by the market demand. Points Earned: 0.5/0.5 Correct Answer(s): B 4. Which of the following is an example of a barrier to entry? A) A firm is open for business only at certain hours of the day, and has its doors locked at other times. B) The government grants licenses to taxicab drivers, without which it is illegal to operate a taxicab. C) A newspaper sells advertising space to businesses. D) lack of a Web site Points Earned: 0.5/0.5 Correct Answer(s): B 5. Facebook is a social networking Web site that is used by a growing number of individuals. Because of its popularity, it is now more difficult for new networking websites to enter and compete with Facebook. Facebook enjoys ________ as a barrier for others to enter the market. A) a network externality B) price discrimination C) a negative externality D) economies of scale Points Earned: 0.5/0.5 Correct Answer(s): A 6.
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Table 10.1 Refer to Table 10.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. The total revenue that Gladys receives from selling four units of output is: A) $4. B) $6. C) $10. D) $24. Points Earned: 0.5/0.5 Correct Answer(s): D 7. Refer to Table 10.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. The marginal revenue that Gladys receives from selling the fourth unit of output is: A) $3. B) $6. C) $10. D) $24. Points Earned: 0.5/0.5 Correct Answer(s): A 8. Refer to Table 10.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. Gladys' marginal revenue becomes negative starting with the production of which unit?
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A) 2 B) 4 C) 6 D) None of the above; marginal revenue is always positive or zero. Points Earned: 0.5/0.5 Correct Answer(s): C 9. Which of the following best characterizes the tradeoff faced by a monopolist when deciding what
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This note was uploaded on 03/30/2012 for the course ECON 2302 taught by Professor Love during the Fall '08 term at Lone Star College.

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econ9 - Pure Competition ANSWERS TO END-OF-CHAPTER...

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