Monopoly Quiz

Which market structure is likely to have the most firms?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

What is the role of a monopolist in a market?

• To compete with other firms

• To be the sole supplier

• To reduce market prices

• To increase competition

What is the average cost?

• The total cost of production divided by the quantity of output

• The total revenue divided by the quantity of output

• The total profit divided by the quantity of output

• The total variable cost divided by the quantity of output

What is the entry condition for new firms in perfect competition?

• Restricted

• Free

• Limited

• Prohibited

Which market structure has restricted entry for new firms?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

How does government protection contribute to a monopoly?

• By increasing competition

• By reducing start-up costs

• By providing legal barriers to entry

• By allowing open market access

What role do unfair practices play in establishing a monopoly?

• They promote fair competition

• They create barriers for new entrants

• They reduce market power

• They encourage innovation

What can lead to the end of a monopoly's government protection?

• Introduction of competition

• Technological change

• Policy changes

• Increased demand

What is the relationship between demand and marginal revenue in a monopoly?

• Demand is greater than Marginal Revenue

• Demand is equal to Marginal Revenue

• Demand is less than Marginal Revenue

• Demand is unrelated to Marginal Revenue

According to the table, what is Adrian's reservation price?

• $7

• $8

• $9

• $10