In which of the following situations can a firm be

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1. In which of the following situations can a firm be considered a monopoly? a. When a firm is surrounded by other firms that produce close substitutes b. When a firm can ignore the actions of all other firms c. When a firm uses other firms’ prices in order to price its products d. When barriers to entry are eliminated 2. Using the broader definition of monopoly, in which of the following cases could we argue that Microsoft has a monopoly in computer operating systems? 3. Which type of barrier to entry is the granting of a patent or copyright to an individual or firm considered? a. Entry blocked by government action b. Entry blocked by externalities c. Entry blocked by economies of scale d. Entry blocked by natural or technical constraints
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CHAPTER 14 | Monopoly and Antitrust Policy 399 4. Which of the following rights is given to the holder of a patent ? 5. The more cell phones in use, the more valuable they become to consumers. Which of the following terms best ascribes to that assertion? 6. What is the name given to the situation where economies of scale are so large that one firm can supply the entire market at a lower average total cost than two or more firms? a. Network externalities b. Productive efficiency c. Natural monopoly d. Market power 7. Refer to the graph below. Which point corresponds to a natural monopoly serving this market and breaking even?
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400 8. Refer to the graph below. Which point corresponds to a natural monopoly market being divided equally between two firms?
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