( Best 40+ ) Monopoly MCQ

Monopoly MCQ What do you mean by monopoly? A monopoly refers to when a company and its product offerings dominate one sector or industry. Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market. 1. Which of the following best defines price discrimination ? A. charging different prices on the basis of race B. charging different prices for goods with different costs of production C. charging different prices based on cost-of-service differences D. selling a certain product of given quality and cost per unit at different prices to different buyers 2. Compared to the case of perfect competition, a monopolist is more likely to ? A. charge a higher price B. produce a lower quantity of the product C. make a greater amount of economic profit D. all of the above 3. In pure monopoly, what is the relation between the price and the marginal revenue ? A. the price is greater than the marginal revenue B. the price is less than the marginal revenue C. there is no relation D. they are equal 4. If a marginal revenue exceeds marginal cost, a monopolists should? A. increase should B. decrease output C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost D. raise the price 5. If regulators break up a natural monopoly into many smaller firms, the cost of production ? A. will rise B. will fall C. will remain the same D. could either rise or fall depending on the elasticity of the monopolist’s supply curve 6. Public ownership of natural monopolies ? A. tends to be inefficient. B. usually lowers the cost of production dramatically. C. creates synergies between the newly acquired firm and other government-owned companies. D. does none of the things described in these answers 7. Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ? A. Cause the monopolist to exit the market B. improve efficieny C. raise the price of good D. attract additional firms to enter the market 8. Compared to a perfectly competitive market a monopoly market will usually generate ? A. higher prices and lower output B. higher prices and higher output C. lower prices and lower output D. lower prices and higher output 9. A monopolist maximizes profit by producing the quantity at which ? A. marginal revenue equals marginal cost B. marginal revenue equals price C. marginal cost equals price D. marginal cost equals demand E. none of these answers >10. A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ? A. natural monopoly B. perfect competitor C. government monopoly D. regulated monopoly Monopoly MCQ What do you mean by monopoly? A monopoly refers to when a company and its product offerings dominate one sector or industry. Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market. 11. In the UK the government ? A. Bans monopolies B. Fines all monopolies C. Prevents firms acquiring more than 25% of the market D. Has the right to investigate monopolies and will assess each one on its own merits 12. According to Schumpeter ? A. Monopolies are inefficient B. Monopoly profits ac as an incentive for innovation C. Monopolies are alocatively efficient D. Monopolies are productively efficient 13. In a monopoly which of the following is not true ? A. Products are differentiated B. There is freedom of entry and exit into the industry in the long run C. The firm is a price taker D. There is one main sellers 14. In monopoly in long run equilibrium ? A. The firm is Productively efficient B. The firm is allocatively inefficient C. The firm produces where marginal cost is less than marginal revenue D. The firm produces at the socially optimal level 15. The marginal revenue curve in monopoly ? A. Equals the demand curve B. Is parallel with the demand curve C. Lies below and converges with the demand curve D. Lies below and diverges from the demand curve 16. In price discrimination, which section of the market is charged the higher price ? A. The section with the richest people B. The section with the oldest people C. The section with the most inelastic demand D. The section with the most elastic demand 17. In order to practice price discrimination which of the following is needed ? A. some degree of monopoly power B. an ability to separate the market C. an ability to prevent reselling D. all of the above 18. Which of the following is necessary for a natural monopoly ? A. economies of scale B. a high proportion of the total cost in the cost of capital goods C. the market is very small D. all of the above 19. This monopolist should produce ?A. 1 B. 2 C. 3 D. 4 E. 5 20. In order to maximize profits, a monopoly company will produce that quantity at which the ?A. marginal revenue equals average total cost B. Price equals marginal revenue C. marginal revenue equals marginal cost D. total revenue equals total cost Monopoly MCQ What do you mean by monopoly? A monopoly refers to when a company and its product offerings dominate one sector or industry. Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market. 21. Which of the following is a characteristic of pure monopoly ?A. One seller of the product B. low barriers to entry C. close substitute products D. perfect information 22. A monopoly is able to continue to generate economic profits in the long run because ? A. there is some barrier to entry to that market B. Potential competitors sometimes don’t notice the the profits. C. the monopolist is financially powerful. D. antitrust laws eliminate competitors for a specified number of years. E. of all of the things described in these answers 23. Which of the follow statements about price discrimination is not true ? A. Perfect price discrimination generates a deadweight loss B. Price discrimination can raise economic welfare. C. price discrimination requires that seller be able to separate buyers according to their willingness to pay. D. Price discrimination increases a monopolist’s profits. E. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage. 24. The purpose of antitrust (also known as competition) laws is to ? A. Increase competition in an industry by preventing mergers and breaking up large firms. B. regulate the prices charged by a monopoly C. increase merger activity to help generate synergies that reduce costs and raise efficiency. D. create public ownership of natural monopolies E. all of these answers 25. The monopolist’s supply curve ? A. does not exist B. is the marginal cost curve above average variable cost? C. is the marginal cost curve above average total cost D. is the upward-sloping portion of the average total cost curve E. The upward-sloping portion of the average variable cost 26. The inefficiency associated with monopoly is due to ? A. underproduction of the good B. the monopoly’s profits C. the monopoly’s losses D. overproduction of the good 27. Thomas is a monopolist in the production of your textbook because ? A. Thomson has a legally protected exclusive right to produce this textbook B. Thomson owns a key resource in the production of textbooks. C. Thomson is a natural monopoly, D. Thomson is a very large company 28. Which of the following statements about price and marginal cost in competitive and monopolized markets is true ? A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost. B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost 29. When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ? A. below the price because the price effect outweighs the output effect B. above the price because the output effect outweighs the price effect C. above the price because the price effect outweighs the output effect D. below the price because the output effect outweighs the price effect 30. Which of the following is not a barrier to entry in a monopolized market ? A. A single firm is very large B. The government gives a single firm the exclusive right to produce some good C. The costs of production make a single producer more efficient than a large number of productions D. A key resource is owned by a single firm Monopoly MCQ What do you mean by monopoly? A monopoly refers to when a company and its product offerings dominate one sector or industry. Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market. 31. A welfare loss occurs in monopoly where ? A. The price is greater than the marginal cost B. The price is greater than the marginal benefit C. The price is greater than the average revenue D. The price is greater than the marginal revenue 32. In monopoly which of the following is true ? A. There are many buyers and sellers B. There is one main buyer C. There is one main seller D. The actions of one firm do not affect the market price and quantity 33. Barriers to entry do not include ? A. Patents B. Internal economies of scale C. Mobility of resources D. High investment costs 34. In monopoly when abnormal profits are made ? A. The price set is greater than the marginal cost B. The price is less than the average cost C. The average revenue equals the marginal cost D. Revenue equals total cost 35. X inefficiency occurs when ? A. The price is greater than the marginal cost B. The price is greater than the average cost C. Costs are higher than they could be due to a lack of competitive pressure D. There are external cost Join Our Telegram Channel Read More :- Best Economic Questions

Monopoly MCQ

What do you mean by monopoly?

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