Economics Quiz Monopoly

What is a monopoly?

• A market structure in which there is only one supplier of a product.

• A board game

• involves a very large number of firms producing a standardized product.

• a relatively large number of sellers producing differentiated products

Monopolies have great market power in that they are the sole determinant of price

• True

• False

Monopolies are an ideal example of

• perfect competition

• imperfect competition

A monopolist is a.....

• Price taker

• Profit Taker

• Price maker

• Profit discriminator

What are the general classes of barriers to entry in a monopoly?Natural barriers

• Government Barriers

• Natural barriers

• Cost Barriers

• Regulation Barrier

What is natural monopoly?

• monopoly  based on ownership or control of a manufacturing method

• Government monopoly

• A market situation where it is most efficient for one business

• Ownership or control of manufacturing method

Natural monopolies are regulated by the government

• True

• False

What is not a barrier for attempting to compete with a monopoly?

• Patents

• Economies of Scale

• Diseconomies of Scale

• Copyrights

How many firms is a monopoly structure composed of?

• 2

• 4

• 50

• 1

What is a benefit of a monopoly?

• To win

• Gives the firm market power, and the ability to set prices

• to rules or laws designed to control business behavior.