Question 21 (1 point)

Which of the following is the best example of a common resource?

Question 21 options:

a	a streetlight
b	a crowded public beach with free access
c	seats on an airplane
d	a highway to which access is granted only to those who pay a specified toll

Question 22 (1 point)

WhatsApp is a leader in the market for instant messaging applications. Most instant messaging applications, including WhatsApp, require that both message senders and receivers are using the same app. Which of the following factors best explains the source of market power for instant messaging apps like WhatsApp?

Question 22 options:

a	Control of natural resources
b	Economies of scale
c	Network externalities
d	Copyright protection

Question 23 (1 point)

Suppose a monopoly is suddenly transformed into a perfectly competitive market. We would expect:

Question 23 options:

a	price to rise, output to rise, consumer surplus to fall
b	price to rise, output to fall, consumer surplus to fall
c	price to fall, output to rise, consumer surplus to rise
d	price to rise, output to fall, consumer surplus to rise

Question 24 (1 point)

Hydro One is a monopoly in the market for electricity transmission in Ontario. Hydro One owns a lot of infrastructure, which was very costly to build. However, marginal costs of providing electricity services are very low. Which of the following factors best explains Hydro One's monopoly power?

Question 24 options:

a	Economies of scale
b	Copyright protection
c	Technological superiority
d	Network externalities

Question 25 (1 point)

When firms in an oligopoly successfully collude and do not cheat on a cartel agreement, their combined long-run economic profit is similar to:

Question 25 options:

a	Monopoly
b	Perfect Competition
c	Non-colluding Oligopolists
d	Monopolistic Competition