ECO 201 - Unit 9 Exam Questions and Answers Fully Solved
Monopolies require no barriers to entry. - Answers False
Monopolies face a single buyer. - Answers False
Which of these was not listed as an example of a monopoly? - Answers Walmart
The Keurig machine is made by: - Answers Green Mountain
It is _____ that the bottled water market is a monopoly and it is ______ that the city water service
provided to households is a monopoly. - Answers False; true
The additional revenue from the sale of the 4th unit is: - Answers 4
Total revenue is maximized when marginal revenue is equal to zero. - Answers True
Monopolies produce less output than the sum of firms in a competitive industry would. - Answers True
Monopolies charge a ______ price and produce _____ output compared to a perfectly competitive
industry. - Answers Higher; lower
For a monopolist MR is above the price. - Answers False
One reason a monopoly is different from a firm in a perfectly competitive market is: - Answers Average
total costs are not minimized in the long-run for a monopoly.
Why will there be a deadweight loss in the monopoly case? - Answers P>MC
Monopolies are efficient. - Answers False
Which situation below would suggest there is a monopoly selling the good? - Answers Firm has access to
perfect information, produces where MR = MC, and can sustain a profit in the long-run.
True or false: Monopolies should always be discouraged. - Answers False. Sometimes monopolies are
necessary.
Bottled water is a good example of a natural monopoly. - Answers False
Increasing the number of firms in a natural monopoly cost environment would result in higher average
total costs. - Answers True
Regulating a natural monopoly encourages them to be efficient and lower costs. - Answers False
Monopolistic competition differs from perfect competition in what way? - Answers Differentiated
products
Monopolies require no barriers to entry. - Answers False
Monopolies face a single buyer. - Answers False
Which of these was not listed as an example of a monopoly? - Answers Walmart
The Keurig machine is made by: - Answers Green Mountain
It is _____ that the bottled water market is a monopoly and it is ______ that the city water service
provided to households is a monopoly. - Answers False; true
The additional revenue from the sale of the 4th unit is: - Answers 4
Total revenue is maximized when marginal revenue is equal to zero. - Answers True
Monopolies produce less output than the sum of firms in a competitive industry would. - Answers True
Monopolies charge a ______ price and produce _____ output compared to a perfectly competitive
industry. - Answers Higher; lower
For a monopolist MR is above the price. - Answers False
One reason a monopoly is different from a firm in a perfectly competitive market is: - Answers Average
total costs are not minimized in the long-run for a monopoly.
Why will there be a deadweight loss in the monopoly case? - Answers P>MC
Monopolies are efficient. - Answers False
Which situation below would suggest there is a monopoly selling the good? - Answers Firm has access to
perfect information, produces where MR = MC, and can sustain a profit in the long-run.
True or false: Monopolies should always be discouraged. - Answers False. Sometimes monopolies are
necessary.
Bottled water is a good example of a natural monopoly. - Answers False
Increasing the number of firms in a natural monopoly cost environment would result in higher average
total costs. - Answers True
Regulating a natural monopoly encourages them to be efficient and lower costs. - Answers False
Monopolistic competition differs from perfect competition in what way? - Answers Differentiated
products
