1.What would happen if the following scenario takes place in the future? Congress decides to change the patent protection time from 20 years to 7 years. Private research and development would most likely

Group of answer choices

A)decline because innovations would be bring in less profit in that shortened patent time frame.

B)Focus on more long term research and development

C)increase because they would be racing faster to market to innovate and acquire profit.

D)remain at its normal levels as the time reduction would have no bearing on innovation.

2.Because of the perceived downward sloping nature of a monopolist's demand curve, the monopolist will charge a relatively low price at ________.

Group of answer choices

A)minimum level of output

B)a low level of output

C)any level of production

D)a high level of output

3.Because the monopolist is the only firm in the market, its demand curve

Group of answer choices

A)Flat.

B)upward-sloping

C)downward-sloping.

D)Vertical

4.Because of the downward sloping demand curve, a monopolist can increase its revenue is by ________.

Group of answer choices

A)only decreasing price on its goods

B)only increasing price on its goods

C)increasing or decreasing price of its good.

D)charging the maximum price

5.What is true of monopolies?

Group of answer choices

A)Monopolists will earn the highest profit at the point where total revenue is farthest above total cost.

B)Monopolists will earn the most profit by producing the maximum output.

C)Monopolists will earn the most profit by producing at the point where total cost in the lowest.

D)Monopolists will earn the most profit by maximizing revenue at the point where total revenue is highest.

6.What is price discrimination?

Group of answer choices

A)It is defined as an arbitrary change in prices.

B)Price discrimination is illegal.

C)It is defined as charging different prices to different customers for the same product.

D)It is defined as charging different prices to the same customers for different products.

7.When does price discrimination take place?

Group of answer choices

A)When a business can charge different prices to different customers based on their willingness to pay.

B)When a business conceals its pricing policies.

C)When a firm increase prices drastically and suddenly to take advantage of customers

D)When a monopoly enters a market with high-income customers.

8.If market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%, the Herfindahl-Herschman (HHI) index would be ________.

Group of answer choices

A)100

B)2304

C)49

D)3198

9.If market share for six cleaning service companies are 8%, 10%, 6%, 3%, 25%, and 48%, what would be the Herfindahl-Herschman (HHI) index calculation?

Group of answer choices

A)3138

B)52

C)523

D)5008

10.If an economist is talking about bundling, predatory pricing or tying sales they are talking about ________.

Group of answer choices

A)Exclusionary market laws

B)price maintenance agreements.

C)antitrust laws

D)restrictive practices

11.________ happens when a customer is required to buy product #2 in order to be able to buy product #1.

Group of answer choices

A)Predatory pricing

B)price fixing

C)Tying sales

D)Bundling

12.What is a basic difficulty that is faced when dealing with a natural monopoly and trying to maintain a competition policy?

Group of answer choices

A)The natural monopoly structure makes price discrimination unlikely.

B)The natural monopoly structure makes controlling costs not likely or very costly.

C)The natural monopoly structure makes competition not likely or very costly.

D)The natural monopoly structure makes earning profits not likely or very costly.

13.Which of the following examples is of a cost-plus regulation?

Group of answer choices

A)A water utility allowed to cover its costs and make as much profit.

B)An electricity producer sets his price at the Marginal cost level.

C)A power utility plant permitted to cover its costs and make a normal level of profit.

D)A sewage utility only permitted to set its prices to a regulated price.

14.One response to the Great Recession was to pass the ________, which attempted to make reforms to the financial system.

Group of answer choices

A)Great Recession Act

B)Dodd-Frank Act

C)Sarbanes-Oxley Act

D)Glass Steagall Act

15.Price regulation by the government can sometimes compromise ________.

Group of answer choices

A) . production cost

B) a firm's break even point

C)competition

D)consumers confidence