ECON 2000 L08 Market Structures

Multiple Choice

Trustworthy, effective laws and courts tend to make markets work ________ and make society ________.

• less effectively; poorer

• less effectively; richer

• more effectively, poorer

• more effectively, richer.

Multiple Choice

When obtaining information is costly, competition is

• less effective at forcing prices down

• more effective at forcing prices down

• only effective at forcing prices up

• unable to affect price changes

Economic Policy Debate

"Governments should allow prices to rise freely during natural disasters."

We will hear Opening Statements from each side of this debate, followed by Responses from each side.

Poll

“Governments should allow prices to rise freely during natural disasters.” 

• Strongly Agree

• Agree

• Not Sure

• Disagree

• Strongly Disagree

Poll

“Governments should allow prices to rise freely during natural disasters.” 

• Strongly Agree

• Agree

• Not Sure

• Disagree

• Strongly Disagree

Multiple Choice

Does the monopolist charge a higher price, or a lower price, than the competitive equilibrium price?

• Higher Price

• Lower Price

• Same Price

• Impossible to Know

Multiple Choice

The monopolist in our example is able to set a price higher than the competitive equilibrium price BECAUSE the monopolist produces a quantity that is:

• MORE THAN the competitive equilibrium quantity

• EQUAL TO the competitive equilibrium quantity

• LESS THAN the competitive equilibrium quantity

Multiple Choice

What is the best response to 40 rooms?

• 40 Rooms

• 60 Rooms

• 75 Rooms

Multiple Choice

What is the best response to 60 rooms?

• 40 Rooms

• 60 Rooms

• 75 Rooms

Multiple Choice

What is the best response to 75 rooms?

• 40 Rooms

• 60 Rooms

• 75 Rooms