AP Micro Unit 4 Review

In this market structure there is only one seller with a unique product

• monopoly
• perfect competition
• monopolistic competition
• oligopoly

Price fixing and collusion often occur in this type of market structure

• monopoly
• oligipoly
• perfect competition
• monopolistic competition

In this market structure there are many buyers and sellers with identical products

• perfect competition
• monopolistic competition
• monopoly
• oligopoly

One firm dominates the market is known as a:

• Monopoly
• Oligopoly
• Monopolistic Competition
• Pure Competition

Non-price competition is the use of ads, giveaways, or promotions to win customers

• True
• False

The effort by sellers to secretly set production levels or prices is called

• collusion
• price leadership
• compliance
• nonprice competition

For a non-price discriminating monopoly, the marginal revenue is

• negative when the firm is maximizing profit
• increasing at a constant rate
• equal to the price           
• less than the price

Monopolies are able to make economic profit in the long run because 

• they can price discriminate
• they have barriers to entry
• they have inelastic demand curves
• the demand curve is greater than the MR

A perfectly competitive industry is different from a monopoly in that 

• monopolies produce a greater quantity 
• monopolies maximize profit where MC exceeds MR
• monopolies have U-shaped average total cost curves
• perfect competition produces the allocatively efficient quantity               

If the government regulates a natural monopoly by setting a price ceiling where the MC equals the demand then

• the monopoly will break even and make no economic profit
• the monopoly will produce the socially optimal quantity
• consumer surplus will decrease
• the monopoly will make more profit