Econ 201: Homework - Ch. 9: Monopoly
Exam With Complete Solutions
Which statement describes a monopoly? - ANSWER A single firm produces a product
with no close substitutes and control over the market price.
Determine if each example represents a barrier to entry or not.
a. Pfizer is the only firm that is legally allowed to produce and sell Lipitor, a best-selling
cholesterol drug.
b. DeBeers owns nearly all of the world's diamond mines.
c. Boeing already serves a large fraction of the jumbo jet market and is able to produce
at a lower average cost than any potential competitors.
d. Tinseltown Theaters shows almost all the most popular newly-released movies. -
ANSWER a. barrier to entry
b. barrier to entry
c. barrier to entry
d. not barrier to entry
a. Which of the following describes rules created by governments that allow for
exclusivity in sales, use, and production of an invention for a limited period?
b. Which of the following is a word, name, symbol or device that shows the creator of
the good and can only be used by that firm?
c. Which of the following is a legal rule that prohibits copying of material in order to
protect the rights of those responsible for the creation of the good? - ANSWER a. patent
b. trademark
c. copyright
Kentucky Fried Chicken, better known as KFC, holds one of the most desired recipes in
the world for their signature, 11-spice blend used in their fried chicken. In fact, it is so
, valuable, the recipe is kept in a vault and only two people in the world know the full
contents of the recipe.
The KFC fried chicken recipe is an example of - ANSWER a trade secret
Indicate which of the following are treated by intellectual property law. - ANSWER
Treated by intellectual property law:
* patent
* trademark
* copyright
* trade secret
---
Not treated by intellectual property law
* deregulation
* control of physical resource
Match each creation with the type of legal protection that covers it.
a. A recipe for really good baked beans told only to the family dog is a
b. A hit song should have a
c. A new fish tank cleaning device needs a
d. A particularly catchy name for a product should have a
e. Video game code hidden in an underground vault is a
f. A new play called The Secret Sauce needs a
g. A compelling new cartoon character should have a - ANSWER a. trade secret
b. copyright
c. patent
d. trademark
e. trade secret
f. copyright
g. copyright
Classify each scenario according to whether or not it is an example of predatory pricing.
- ANSWER Is an example of predatory pricing:
Exam With Complete Solutions
Which statement describes a monopoly? - ANSWER A single firm produces a product
with no close substitutes and control over the market price.
Determine if each example represents a barrier to entry or not.
a. Pfizer is the only firm that is legally allowed to produce and sell Lipitor, a best-selling
cholesterol drug.
b. DeBeers owns nearly all of the world's diamond mines.
c. Boeing already serves a large fraction of the jumbo jet market and is able to produce
at a lower average cost than any potential competitors.
d. Tinseltown Theaters shows almost all the most popular newly-released movies. -
ANSWER a. barrier to entry
b. barrier to entry
c. barrier to entry
d. not barrier to entry
a. Which of the following describes rules created by governments that allow for
exclusivity in sales, use, and production of an invention for a limited period?
b. Which of the following is a word, name, symbol or device that shows the creator of
the good and can only be used by that firm?
c. Which of the following is a legal rule that prohibits copying of material in order to
protect the rights of those responsible for the creation of the good? - ANSWER a. patent
b. trademark
c. copyright
Kentucky Fried Chicken, better known as KFC, holds one of the most desired recipes in
the world for their signature, 11-spice blend used in their fried chicken. In fact, it is so
, valuable, the recipe is kept in a vault and only two people in the world know the full
contents of the recipe.
The KFC fried chicken recipe is an example of - ANSWER a trade secret
Indicate which of the following are treated by intellectual property law. - ANSWER
Treated by intellectual property law:
* patent
* trademark
* copyright
* trade secret
---
Not treated by intellectual property law
* deregulation
* control of physical resource
Match each creation with the type of legal protection that covers it.
a. A recipe for really good baked beans told only to the family dog is a
b. A hit song should have a
c. A new fish tank cleaning device needs a
d. A particularly catchy name for a product should have a
e. Video game code hidden in an underground vault is a
f. A new play called The Secret Sauce needs a
g. A compelling new cartoon character should have a - ANSWER a. trade secret
b. copyright
c. patent
d. trademark
e. trade secret
f. copyright
g. copyright
Classify each scenario according to whether or not it is an example of predatory pricing.
- ANSWER Is an example of predatory pricing:
