Econ 201: Homework - Ch. 9: Monopoly
Exam 2026 Questions and Answers
Graded A+
Which statement describes a monopoly? - Correct 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.
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,d. Tinseltown Theaters shows almost all the most popular newly-released movies. -
Correct 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? - Correct
answer-a. patent
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, 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 - Correct answer-a trade secret
Indicate which of the following are treated by intellectual property law. - Correct
answer-Treated by intellectual property law:
* patent
* trademark
* copyright
* trade secret
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©COPYRIGHT 2026, ALL RIGHTS RESERVED 3
Exam 2026 Questions and Answers
Graded A+
Which statement describes a monopoly? - Correct 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.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 1
,d. Tinseltown Theaters shows almost all the most popular newly-released movies. -
Correct 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? - Correct
answer-a. patent
©COPYRIGHT 2026, ALL RIGHTS RESERVED 2
, 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 - Correct answer-a trade secret
Indicate which of the following are treated by intellectual property law. - Correct
answer-Treated by intellectual property law:
* patent
* trademark
* copyright
* trade secret
---
©COPYRIGHT 2026, ALL RIGHTS RESERVED 3
