Imperfect Competition

Front

A monopoly differs from perfect competition because:

Back

It has barriers to entry

Front

In a monopoly, the demand curve is

Back

Downward sloping

Front

A monopolist maximizes profit by producing where:

Back

MR = MC

Front

Which of the following is not a barrier to entry for monopolies? Patents, High start-up costs, Government regulation, Perfect information

Back

Perfect information

Front

A natural monopoly occurs when:

Back

Economies of scale make one firm most efficient

Front

Price discrimination occurs when

Back

A firm charges different prices to different groups for the same product

Front

Which condition is required for price discrimination to work? Options: The product must be a necessity, There must be identical products, The seller must prevent resale, The market must be perfectly competitive

Back

The seller must prevent resale

Front

In the long run, firms in monopolistic competition earn:

Back

Zero economic profit

Front

Product differentiation is most closely related to which market structure?

Back

Monopolistic competition

Front

In an oligopoly:

Back

A few large firms dominate the market