A22 Understanding Monopoly in Markets

What is a pure monopoly?

• A market structure with a dominant firm holding at least 40% market share.

• A market structure with only one firm.

• A market structure with at least 25% market share.

• A market structure with multiple firms competing.

What is the legal definition of a monopoly used in the UK?

• A firm with at least 40% of the market.

• A firm with at least 10% of the market.

• A firm with at least 25% of the market.

• A firm with at least 50% of the market.

Which company is an example of a dominant firm in the mobile handset business in the UK?

• Apple

• Samsung

• Huawei

• Nokia

What is the market share of Coca-Cola in the United States?

• 42% plus

• More than 78%

• Less than 20%

• Just over 31%

Which browser had a market share of more than 40% by spring of 2015?

• Chrome

• Safari

• Firefox

• Internet Explorer

What is the five firm concentration ratio in the express and courier service market globally?

• Less than 50%

• 51%

• More than 60%

• Over 84%

Which industry is noted for having a significant number of Chinese firms among its leading players?

• Mobile handsets

• Wind turbine manufacturing

• Internet browsers

• Express and courier services

In which market structure is there the LEAST competition?

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

A barrier to entry is

• an economic term for economies of scale

• illegal in most markets

• anything that prevents new firms from entering the market

• a factor that increases competition

Which of the following is not a barrier to entry in a monopolised market?

• The presence of many buyers and sellers in the market

• The government gives a single firm the exclusive right to produce some good.

• The costs of production make a single producer more efficient than a large number of producers.

• A key resource is owned by a single firm.