Question
Question 1 A standardized or homogeneous product is one where the customer views the product as identical. For this type of customer the only thing
Question 1
A standardized or homogeneous product is one where the customer views the product as identical. For this type of customer the only thing that will matter will be
the customer service
the quality
the most convenience
the lowest price
Question 2
The reason we prefer competition for a society is because
smaller firms have larger economies of scale
in the long run more competition creates more jobs
its long run result is efficiency
smaller firms have less power politically
Question 3
Easy entry is
found in monopoly markets and means that it is relatively easy to start a new business
is found in competitive markets and means that the economies of scale are very large
found in competitive markets and means it is relatively easy to start a new business in competitive industries
found in monopoly markets and it means it is only easy for 1 firm to enter
Question 4
Comparing monopoly versus competitive industry, in most cases, monopoly will
produce less, charge a higher price to customers, and be less efficient
produce less, charge a higher price to customers, and be more efficient
produce more, charge a lower price to customers, and be more efficient
produce more, charge a higher price to customers, and be more efficient
Question 5
Monopoly is created by
demand increasing
barriers
easy entry
diminishing returns
Question 6
Your textbook argues that monopoly may not always be harmful to society. Sometimes it may be beneficial. An example where society may benefit from a monopoly
when it is a legal barrier like patents that encourage increased innovation
when it causes prices to increase
when it increases deadweight losses
when it lowers efficiency
Question 7
A monopoly, unlike competition, has ability to choose
the politicians in charge of regulating the industry
the cost of resources
the demand in the industry
the price it sells at
Question 8
A perfectly competitive industry has the following characteristics
barriers to entry, lots of firms, large and small firms, identical product
easy entry, lots of firms, small firms, identical product
barriers to entry, one firm, perfectly differentiated/unique product
easy entry, lots of firms, a differentiated product
Question 9
A legal barrier of monopoly refers to
a law that forbids monopoly
a barrier to monopoly practices
a barrier to monopoly entry into an industry
A law which makes entry of new businesses difficult limiting competition
Question 10
The effect of a barrier to entry could be
economic profits are guaranteed
high prices cannot be bid down by new competition
externality costs will be incorporated into the price of the product
costs of production cannot be lowered through increased investment
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