If a restaurant was a natural monopoly, dividing the restaurant equally into two separate restaurants would ________.

Select one:

a.

raise average total cost

b.

decrease marginal cost

c.

increase total revenue

d.

make marginal revenue less elastic

Because a monopoly's demand curve is the same as the market demand curve for its product, ________.

Select one:

a.

the monopoly's marginal revenue equals its price

b.

the monopoly is a price taker

c.

the monopoly must lower its price to sell more of its product

d.

the monopoly's average total cost always falls as it increases its output

Many biologic drug manufacturers are pushing for patent protection to be extended to 12 years before generics are allowed to be introduced to the market. This reflects which of the following barriers to entry?

Select one:

a.

Control of a key resource.

b.

Network externalities.

c.

Entry blocked by government action.

d.

Economies of scale creating a natural monopoly.

If we use a narrow definition of monopoly, then monopoly is defined as a firm ________.

Select one:

a.

that has been granted special production rights by the government

b.

that can ignore the actions of all other firms because it produces a superior product compared to its rivals' products

c.

that can ignore the actions of all other firms because it produces a product for which there are no close substitutes

d.

that has the largest market share in an industry