Economics EC248 – Quiz 3 – Practice Questions
Which statement is NOT true about barriers to entry in a market?
may occur naturally
may arise artificially
may be due to large fixed costs
will lead to a monopoly - correct answer ✔✔ will lead to a monopoly
I assume that you will received 10 utils from your first ice cream cone, 7 utils from the second,
and 3 utils from the third. I am following the assumption of
positive marginal utility
decreasing utility
diminishing marginal utility
non-satiation - correct answer ✔✔ diminishing marginal utility
Market power implies
a well functioning market.
only market forces set prices.
an ability to influence market price.
perfect competition. - correct answer ✔✔ an ability to influence market price.
Monopsony refers to
a single supplier in the market
a single buyer in the market
a barrier to entry to the market
an important policy tool - correct answer ✔✔ a single buyer in the market
Which statement is NOT true about barriers to entry in a market?
may occur naturally
may arise artificially
may be due to large fixed costs
will lead to a monopoly - correct answer ✔✔ will lead to a monopoly
I assume that you will received 10 utils from your first ice cream cone, 7 utils from the second,
and 3 utils from the third. I am following the assumption of
positive marginal utility
decreasing utility
diminishing marginal utility
non-satiation - correct answer ✔✔ diminishing marginal utility
Market power implies
a well functioning market.
only market forces set prices.
an ability to influence market price.
perfect competition. - correct answer ✔✔ an ability to influence market price.
Monopsony refers to
a single supplier in the market
a single buyer in the market
a barrier to entry to the market
an important policy tool - correct answer ✔✔ a single buyer in the market
