Econ Chapter 7-2 review

What is a monopoly?

• A market with many sellers
• A market controlled by one seller
• A market with only buyers
• A market with equal competition

What does 'economies of scale' refer to?

• Increased costs with more production
• Lower costs per unit with increased production
• Higher prices for larger businesses
• Equal costs for all production sizes

What is a natural monopoly?

• A market with several competitors
• A market where one firm supplies at a lower cost
• A market controlled by the government
• A market with no competition

What is a government monopoly?

• A monopoly created by a private company
• A monopoly where the government is the only provider
• A monopoly with multiple providers
• A monopoly in a competitive market

What is a patent?

• A business strategy for reducing competition
• A document that allows a company to pay lower taxes
• A government authority grant for an invention
• A legal right to sell shares

What is a franchise?

• A type of government license
• A monopoly controlled by shareholders
• A business model selling rights to a brand
• A market with no government intervention

What is a license in economic terms?

• Permission to operate a business
• A strategy to eliminate competition
• A guarantee of profit
• A document for reducing taxes

What is price discrimination?

• Charging the same price for different products
• Charging different prices to different consumers
• Charging higher prices for all customers
• Charging lower prices for all products

What is market power?

• The ability to control market prices
• The power of consumers to choose products
• The power of the government to regulate markets
• The strength of competition in a market

How does a natural monopoly benefit consumers?

• By increasing the number of sellers
• By reducing prices due to lower production costs
• By eliminating market power
• By increasing government control