Monopolies Quiz

A monopoly is when:

• One seller/business dominates an industry.

• A few sellers/businesses dominate an industry.

• Supply exceeds demand.

• A business offers special gifts and coupons.

Why are monopolies usually illegal in the US?

• They deprive the consumer of choices.

• They force the consumer to pay high prices.

• They make it difficult for new companies to enter the market.

• All of the above.

Which picture is an example of a government monopoly?

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In an oligopoly...

• One seller dominates the market

• A few sellers dominate the market

• Many sellers are in the market

• No sellers exist in the market

Which of the following describes the selling of the same product to different consumers at different prices?

• Price discrimination

• Interdependent Pricing

• Price competition

• The Price is Right with Bob Barker

a government license that gives the inventor of a new product the exclusive right to produce and sell it

• patent

• license

• market power

• economies of scale

John D. Rockefeller's ________________________ held a monopoly since he controlled 90% of the oil refiner

• Standard Oil Co.

• United Steel

• Pacific Railroad

• Light Bulb

Another term for monopoly during the period 1865-1900 was

• Big Business
• Trust
• Giant of Industry
• Forbes 500

One of the requirements for a monopoly is that

• products are high priced

• there are several close substitutes for the product

• there is a unique product with no close substitutes

• the product cannot be produced by small firms

Which of the following is a source of monopoly power?

• Scarcity
• Elasticity of demand
• Barriers to entry
• Low Profits