ArCh24_10e.doc - Chapter 24—Monopoly MULTIPLE CHOICE 1....

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Chapter 24—MonopolyMULTIPLE CHOICE1.Which of the following is an assumption of the theory of monopoly?a.There are extremely high barriers to entry.b.There are many sellers.c.The product has a number of close substitutes.d.The product is of extremely high quality.ANS: APTS:1DIF:EasyNAT:Analytic
LOC: Monopoly2.The theory of monopoly assumes that the monopoly firmPTS:1DIF:ModerateNAT:Analytic
LOC: Monopoly3.Firm X is a single seller of good X. There are, however, two substitutes for good X. Giventhis,PTS:1DIF:ModerateNAT:Analytic
LOC: Monopoly4.Suppose Firm X is a monopolist and is receiving positive economic profits. What prevents otherfirms from directly competing away the profits?PTS:1DIF:EasyNAT:Analytic
LOC: Monopoly5.Which of the following is an example of a legal barrier to entry?a.a public franchiseb.a patentc.exclusive ownership of a scarce resource
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d.a and be.a, b, and cANS: DPTS:1DIF:EasyNAT:AnalyticLOC: Monopoly6.A public franchise is aright grantedPTS:1DIF:ModerateNAT:Analytic
LOC: Monopoly

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Term
Spring
Professor
CaraTucker
Tags
Economics, Monopoly, monopolist

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