managerial economics

It occurs when the average cost of production declines throughout the relevant range of product demand

• a.    Perfect Competition

• a.    Monopolistic Competition

• a.    Natural Monopoly

A Monopolistic firm is MOST likely to do which of the following?

• a.    Allow itself to be too influenced by consumer demands.

• Restrict output below socially desirable levels

• a.    Devote too much time to minimizing production costs.

The monopolist can set a price well above the competitive supply and demand level by

• a.    Restricting output

• a.    Pushing the supply curve as far to the right as it will go.

• a.    Advertising to expand the market

It is a group of producers that enter into a collusive agreement aimed at controlling price and output in a market.

• a.    Control Resources

• a.    Cartels

• a.    Product Differentiation

1.    Are cost advantages reaped by companies when production becomes efficient.

• a.    Average Cost

• a.    High fixed Cost

• a.    Economies of Scale

Pure Monopoly is a specific type of monopoly that can arise when there are very high fixed costs or other barriers to entry in getting started in a certain business or delivering a product service

• TRUE

• FALSE

 

1.    The Monopolist uses its market power to unrestricted and lowers the prices.

• TRUE

• FALSE

1.    In a pure monopoly, in contrast, a single firm is the sole supplier of a good or service.

• TRUE

• FALSE

1.    A perfect competitive market delivers output to consumers at the lowest sustainable price.

• TRUE

• FALSE

1.    Product differentiation occurs to a greater or lesser degree in most consumer markets.

• TRUE

• FALSE