MCQ

Which of the following is characteristicof a monopoly?

1. homogeneous products/services
2. "price taking"
3. "price setting"
4. "follow the leader"pricing strategies
5. lack of market power

1 points

QUESTION 3

The main determinant of the elasticity of supply is the;

1. the number of similar, or substitute goods that the consumer can chose from
2. amount of time the producer has to adjust product availability in response to changes in demand
3. number of uses for this product
4. amount that consumers are willing and able to pay

1 points

QUESTION 4

The "profit max.@MR =MC"rule applies;

1. only when the demand for the product is elastic
2. only when demand for the product is inelastic
3. only in a competitive market
4. only when S =D
5. to firms in all types of industries,or markets

1 points

QUESTION 5

The North American automotive industry would be described by economic analysts as;

1. purely competitive
2. an oligopoly
3. monopolistically competitive
4. a pure monopoly
5. not really any of these

1 points

QUESTION 6

The fact that the third slice of pizza did not generate as much satisfaction, or utility, as the second slice is an example of;

1. the paradox of (economic)utility
2. the law of diminishing (marginal) returns,or utility
3. the theory of surplus value
4. consumer surplus
5. an example of an over abundance of resources

1 points

QUESTION 7

The population of the United States is about ten times the size of Canada's.Let's assume that the capacity of a typical American brewery will be much greater than that of a Canadian brewery. Assuming economies of scale,ceterisparibus,

1. American beer will be cheaper than Canadian beer
2. American beer will be more expensive than Canadian beer
3. the American beer industry will have a higher concentration ratio
4. the Canadian beer industry will have a higher concentration ratio

1 points

QUESTION 8

If a firm in a purely competitive industry faces a market equilibriumof$5, its marginal revenue ;

1. will always be less than $5
2. will always be a multiple of $5(as in 5,10,15 . . . .)
3. will also be $5
4. will always be equal to its MC

1 points

QUESTION 9

A fixed cost is;

1. any cost that a firm would incureven if there was no output
2. any/all costs which increaseproportionatelyas output increases
3. any/all costs which increase as output increases butnotproportionately
4. greater than all of the variable costs
5. something you didn'tstudy because you didn't expect to see it on the test