If oligopolistic firms (think OPEC) banded together with the intention of acting like a monopoly, it would likely result in their being able to,

	hold down output in the short run and raise prices in the short run
	increase output in the short run and raise prices in the short run
	lead to more firms in the market
	both a and c

The slope of the demand curve for a monopoly firm is:

	Flat; this means the firm must sell either a low quantity or high quantity at exactly the same price.
	The same as the market demand curve, which is downward sloping.
	Horizontal, meaning that the monopolist has little control over quantity produced.
	Curved.

Natural Monopolies may arise when:

	there are substantial economies of scale
	a company has control of scarce resources
	there are high costs to transport products in smaller markets
	All of the above

The slope of the demand curve for a monopoly firm is:

	Downward sloping
	Upward sloping
	Vertical, parallel to the y-axis
	Horizontal, parallel to the x-axis

According to Economists, a __________ occurs when the economies of scale are large relative to the quantity demanded in the market. This occurs in industries where the marginal cost of adding an additional customer is very low, once the fixed costs of the overall system are in place.

	Natural Monopoly
	Monopoly
	Monopolistic competition
	Oligopoly

A Monopolist can best be described as:

	A firm that is the sole producer of a product in which there are no close substitutes, and high barriers to entry.
	A firm that has high demand for its product within a narrowly defined product class such as brown Grade A Eggs produced in Eagle country, Colorado.
	A large multinational firm, with high barriers to entry that produces a single product within the market.
	A firm that has government support, high barriers to entry and produces a single product in a narrow product class.

Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?

	Its price will be too high and its output too large.
	Its price will be too low and its output will be too large.
	Its price will be too high and its output too small.
	Its price will be too low and its output will be too small .