QUESTION 1:

A government monopoly occurs when the government prohibits competition in a particular market. These monopolies may exist in industries such as the postal service, public utilities, telecommunication systems, and transportation systems.

Government regulations might establish a monopoly by creating a/an _____ for competitors to enter the market.

Select one:

1.barrier

2.invitation

3.license

4.procedure

QUESTION 2:

If Lamont walks into Grady's Used Pickups and sees a truck he likes but waits to buy it until he shops around, what type of demand does he exhibit?

Select one:

1.Fixed.

2.Inelastic.

3.Variable.

4.Elastic.

QUESTION 3:

In determining profit, how is total revenue calculated?

Select one:

1.Price minus the quantity sold.

2.Price plus the quantity sold.

3.Price divided by the quantity sold.

4.Price times the quantity sold.

QUESTION 4:

Which statement is true regarding a competitive market?

Select one:

1. Each buyer has more power than a seller relative to the total market.

2. Each seller has more power than a buyer relative to the total market.

3. Each buyer and seller is small relative to the total market.

4. Each buyer and seller is large relative to the total market.