1)If a perfectly competitive industry is monopolized, consumer surplus: A. becomes equal to producer surplus. B. can be expected to decrease. C. usually remains constant. D. becomes double of producer surplus.

2)If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150. True or False

3)The term "monopolistic competition": A. denotes an industry characterized by one seller of many differentiated products. B. denotes an industry characterized by many sellers of differentiated products. C. is used to describe perfect competition that has strong entry barriers. D. denotes an industry characterized by many sellers of homogeneous products.

4)A monopolistic competitor's demand curve is A. less elastic than a monopolist's or oligopolist's but more elastic than a perfect competitor's demand curve. B. as elastic as an oligopolist's demand curve. C. more elastic than a monopolist's or oligopolist's but less elastic than a perfect competitor's demand curve. D. perfectly elastic.

5)Monopolistic competition is different from perfect competition because monopolistic competitors: A. are price takers. B. produce differentiated products C. have high barriers to entry. D. produce homogeneous products.

6)Monopolistically competitive firms: A. may earn short-run economic profit, but long-run economic profit is typically zero. B. may earn economic profit both in the short run and in the long run. C. are guaranteed to earn short-run economic profit. D. earn zero economic profit both in the short run and in the long run.

7)Which of the following characteristics distinguishes oligopoly from other market structures? A. Interdependence among firms in the industry B. The production of homogeneous products C. A downward-sloping demand curve D. A horizontal demand curve

8)Interdependent decision making on price, quality, or advertising is a characteristic of: A. monopolistic competition. B. perfect competition. C. oligopolies. D. monopolies.

9)During certain periods in the past few decades, if one of the three major breakfast cereal producers in the United States announced a price increase, the other two announced a similar price increase. This implies that the market for breakfast cereals is a good example of _____. A. the price-leadership model of oligopoly B. a cartel. C. a pure monopoly. D. monopolistic competition

10)The principal advantage of the game theory approach is that it allows to: A. better understand decision making when one person's choices affect another person's choices. B. take all possible information into consideration before developing a theory. C. better understand why firms in a competitive industry avoid games. D. better understand how the government should regulate a natural monopoly.

11)Differentiate between perfect competition and an oligopoly? A. Firms in an oligopoly face horizontal demand curves, whereas firms in a perfectly competitive market face downward-sloping demand curves. B. Firms in an oligopoly charge a lower price than firms in a perfectly competitive market. C. Firms in an oligopoly earn economic profit in the long run, whereas firms in perfectly competitive market earn zero economic profit in the long run. D. An oligopoly is characterized with low barriers to entry, whereas a perfectly competitive market is characterized with high barriers to entry..

Part B.

If a profit-maximizing monopoly is producing an output at which marginal cost exceeds marginal revenue, it should O a. increase price and decrease output. Ob. decrease price and decrease output. Oc. decrease price and increase output. Od. increase price and increase output. QUESTION 8 A perfect price-discriminating monopoly is Oa. never efficient. Ob. as efficient as a perfectly competitive market. Oc. more efficient than a perfectly competitive market. Od. less efficient than a perfectly competitive market. QUESTION 9 If a firm practises perfect price discrimination, On. its marginal cost curve is vertical. Ob. it will produce the quantity at which the marginal revenue curve intersects the average total cost curve. Oc. it will produce the quantity at which the marginal cost curve intersects the demand curve. Od. it will minimize total cost. QUESTION 10 The output of a not-perfect-price-discriminating monopoly is a more than a single-price monopoly but less than a perfectly competitive market. Ob, more than a single-price monopoly. O)o. less than a single-price monopoly but more than a perfectly competitive market. O'd. the same as a perfectly competitive market.Remaining Time: 2 hours, 27 minutes, 12 seconds, Question Completion Status: Which of the following examines the reasons for and effects of trade restriction? O A. Balance of payments. O B. Foreign exchange market. C. International trade policy. D. International trade theory. QUESTION 2 The open-economy macroeconomic processes for correcting balance of payments disequilibria are collectively called: O A. Discretionary fiscal policy, O B. Foreign Exchange market. O C. Monetary policy. O D. Adjustment in the balance of payments. QUESTION 3 The economic relationship and integration among nations is defined as: A. Microeconomics. O B. Economic Interdependence, O C, International trade. D. Open economics. Click Save and Submit to save and submit. Click Save All Answers to save all answers.The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only Rubberland's Production Possibilities 200 makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the 180 graph. Point A on the PPF represents the combination of the 160 two goods Rubberland currently produces. 140 When a new method of rubber processing is discovered, the 120 productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Quantity of rubber band balls 100 Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new 40 production point. How many more rubber hoses do they now produce per day PPF than before? 10 20 30 40 50 60 70 80 90 100 Quantity of rubber hoses 20 more hoses per day