ECO 201 Chapter 15 Exam
Questions and Answers 100% Pass
What is a monopoly? - ✔✔A firm that is the only seller of a good or service that does
not have a close substitute.
A firm is a monopoly if.. - ✔✔1. It can ignore the actions of all other firms.
2. It's economic profits are not competed away in the long run.
To have a monopoly barriers to entry must be what? - ✔✔So high that know the firm
can enter.
What are the four barriers to entry for a market that is a monopoly? - ✔✔1. Government
blocks the Entry of more than one firm into a market.
2. One firm has control of a key resource necessary to produce a good.
3. There are important network externalities in supplying the good or service.
4. Economies of scale are so large that one firm has a natural monopoly.
What can the government do to block entry to a market with a monopoly? - ✔✔1.
Granting a patent or copyright.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
Questions and Answers 100% Pass
What is a monopoly? - ✔✔A firm that is the only seller of a good or service that does
not have a close substitute.
A firm is a monopoly if.. - ✔✔1. It can ignore the actions of all other firms.
2. It's economic profits are not competed away in the long run.
To have a monopoly barriers to entry must be what? - ✔✔So high that know the firm
can enter.
What are the four barriers to entry for a market that is a monopoly? - ✔✔1. Government
blocks the Entry of more than one firm into a market.
2. One firm has control of a key resource necessary to produce a good.
3. There are important network externalities in supplying the good or service.
4. Economies of scale are so large that one firm has a natural monopoly.
What can the government do to block entry to a market with a monopoly? - ✔✔1.
Granting a patent or copyright.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
