PURE MONOPOLY EXAM Q&A
The efficiency loss resulting from a monopolistic market is called a ___ loss. -
ANSWER-The efficiency loss resulting from a monopolistic market is called a
deadweight loss
Which of the following are characteristics of a contestable firm? - ANSWER--No real
barriers to entry
-A single firm
Monopoly is a market structure characterized by: - ANSWER--The firm having
significant price control.
-A good or service for which there are no close substitutes.
-A market with barriers to entry.
-A single seller.
Total revenue equals: - ANSWER-Price times quantity.
And a pure ___ has the overall demand to itself, because it is the only seller in a
market. - ANSWER-And a pure monopoly has the overall demand to itself, because
it is the only seller in a market
The level of profit that occurs when total revenue is equal to total cost is known as
___ profit. - ANSWER-The level of profit that occurs when total revenue is equal to
total cost is known as normal profit.
For a monopoly, the marginal revenue is below the demand curve because: -
ANSWER-The monopoly has to lower the price on all units to sell more.
Which of the following are characteristics of a perfectly competitive market? -
ANSWER--Large number of sellers
-No control over price
Marginal revenue is the: - ANSWER-Extra or additional revenue associated with the
production of an additional unit of output.
When a firm has a loss, the total ___ is less than the total ___. - ANSWER-When a
firm has a loss, the total revenue is less than the total cost
Productive efficiency is: - ANSWER-Using the fewest resources possible to produce
a good or a service.
A monopoly will charge consumers the price that they're willing and able to pay for
the amount of output available, which is shown along the ___ cruve. - ANSWER-A
monopoly will charge consumers the price that they're willing and able to pay for the
amount of output available, which is shown along the demand cruve.
The efficiency loss resulting from a monopolistic market is called a ___ loss. -
ANSWER-The efficiency loss resulting from a monopolistic market is called a
deadweight loss
Which of the following are characteristics of a contestable firm? - ANSWER--No real
barriers to entry
-A single firm
Monopoly is a market structure characterized by: - ANSWER--The firm having
significant price control.
-A good or service for which there are no close substitutes.
-A market with barriers to entry.
-A single seller.
Total revenue equals: - ANSWER-Price times quantity.
And a pure ___ has the overall demand to itself, because it is the only seller in a
market. - ANSWER-And a pure monopoly has the overall demand to itself, because
it is the only seller in a market
The level of profit that occurs when total revenue is equal to total cost is known as
___ profit. - ANSWER-The level of profit that occurs when total revenue is equal to
total cost is known as normal profit.
For a monopoly, the marginal revenue is below the demand curve because: -
ANSWER-The monopoly has to lower the price on all units to sell more.
Which of the following are characteristics of a perfectly competitive market? -
ANSWER--Large number of sellers
-No control over price
Marginal revenue is the: - ANSWER-Extra or additional revenue associated with the
production of an additional unit of output.
When a firm has a loss, the total ___ is less than the total ___. - ANSWER-When a
firm has a loss, the total revenue is less than the total cost
Productive efficiency is: - ANSWER-Using the fewest resources possible to produce
a good or a service.
A monopoly will charge consumers the price that they're willing and able to pay for
the amount of output available, which is shown along the ___ cruve. - ANSWER-A
monopoly will charge consumers the price that they're willing and able to pay for the
amount of output available, which is shown along the demand cruve.
