QUESTION 1: In a competitive market, a producer decides the _____ of a product that they want to produce at the _____. Select one:

1. variable cost; global rate

2. opportunity cost; global rate

3. fixed cost; market price

4. quantity; market price

QUESTION 2:

Why does GlaxoSmithKline hold a monopoly over the AIDS drug Combivir? Select one:

1.The company has market power due to a nonexclusive license.

2. The company has market power due to a patent.

3. The company has market power due to lack of government regulation.

4. The company has market power due to an economy without scale.

QUESTION 3:

Competition and Market Structure: Question 3 Which item might create a monopoly by establishing a barrier to competitors? Select one:

1.Economy without scale.

2.Nonexclusive licenses.

3. Lack of government regulation.

4. Government patents.