Question 6 (5 points)

Pure monopolists may obtain economic profit in the long-run because:

Question 6 options:

a)

Of advertising

b)

Marginal revenue is constant as sales increase

c)

Of barriers to entry

d)

Of rising average fixed costs

Question 7 (5 points)

An industry is characterized as having many firms, a differentiated product, no barriers to entry and elastic demand. What is it's market structure?

Question 7 options:

Perfectly competitive

Oligopoly

Monopolistic Competition

Monopoly

Question 8 (5 points)

The individual mandate under the Affordable Care Act was intended to prevent which of the following?

Question 8 options:

a)

Rising health care costs

b)

Rising deficits

c)

Adverse selection

d)

Moral hazard

Question 9 (5 points)

Which of the following conditions is NOT NECESSARY in order for a firm to price discriminate?

Question 9 options:

a)

The product cannot be resold

b)

The firm must have some market power

c)

The firm must have many buyers and sellers

d)

The market can be segmented into different groups of consumers

Question 10 (5 points)

Which of the following statements correctly identifies increasing returns inproduction?

a)

As a firm adds workers, output declines

b)

Marginal Product is greater thanAverage Product

c)

Marginal Product equals Average Product

d)

As firms increase workers, output increases at a diminishing rate

Question 10 options: