1. <\/b> A nondiscriminating pure monopolist is generally viewed as: (Points : 1) Productively efficient, but allocatively inefficient<\/p>\n
Productively inefficient, but allocatively efficient<\/p>\n
Both productively and allocatively inefficient<\/p>\n
Both productively and allocatively efficient<\/p>\n
Question 2.
\n2. <\/b> In a duopoly, if one firm increases its price, then the other firm can: (Points : 1) keep its price constant and thus increase its market share<\/p>\n
keep its price constant and thus decrease its market share<\/p>\n
increase its price and thus increase its market share<\/p>\n
decrease its price and thus decrease its market share<\/p>\n
Question 3.
\n3. <\/b> One defining characteristic of pure monopoly is that: (Points : 1) The monopolist is a price taker<\/p>\n
The monopolist uses advertising<\/p>\n
The monopolist produces a product with no close substitutes<\/p>\n
There is relatively easy entry into the industry, but exit is difficult<\/p>\n
Question 4.
\n4. <\/b> The MR = MC rule applies: (Points : 1) to firms in all types of industries.<\/p>\n
only when the firm is a “price taker.”<\/p>\n
only to monopolies.<\/p>\n
only to purely competitive firms.<\/p>\n
Question 5.
\n5. <\/b> Electric utilities generally charge higher prices for electricity used for illumination and lower prices for electricity used for heat. These lower prices for electric heat result primarily from: (Points : 1) the existence of good heating substitutes<\/p>\n
economies of scale in electric heat generation<\/p>\n
prices for electric heat being set at the socially optimal level<\/p>\n
strict government regulation of the price charged for electric heat<\/p>\n
Question 6.
\n6. <\/b> If a monopolized industry should become purely competitive without any change in cost conditions: (Points : 1) Both price and quantity produced will increase<\/p>\n
Both price and quantity produced will decrease<\/p>\n
Price will increase and quantity produced will decrease<\/p>\n
Price will decrease and quantity produced will increase<\/p>\n
Question 7.
\n7. <\/b> Sam owns a firm that produces tomatoes in a purely competitive market. The firm’s demand curve is: (Points : 1) A vertical line<\/p>\n
A horizontal line<\/p>\n
Upsloping to the right<\/p>\n
Downsloping to the right<\/p>\n
Question 8.
\n8. <\/b> Which is not a basic market model? (Points : 1) Pure competition<\/p>\n
Free enterprise<\/p>\n
Oligopoly<\/p>\n
Monopoly<\/p>\n
Question 9.
\n9. <\/b> A positive effect of advertising for society is that it: (Points : 1) increases market share for the dominant firm in the industry.<\/p>\n
provides useful information to reduce search cost for consumers.<\/p>\n
raises barriers to entry into the industry and protects existing firms.<\/p>\n
creates price leadership and gives firms guidance in dealing with rivals.<\/p>\n
Question 10.
\n10. <\/b> A major reason that firms form a cartel is to: (Points : 1) reduce the elasticity of demand for the product.<\/p>\n
enlarge the market share for each producer.<\/p>\n
minimize the costs of production.<\/p>\n
maximize joint profits.<\/p>\n
Time Remaining:<\/p>\n","protected":false},"excerpt":{"rendered":"
1. A nondiscriminating pure monopolist is generally viewed as: (Points : 1) Productively efficient, but allocatively inefficient Productively inefficient, but allocatively efficient Both productively and allocatively inefficient Both productively and allocatively efficient Question 2. 2. In a duopoly, if one Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-71238","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/71238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=71238"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/71238\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=71238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=71238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=71238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}