2025 Market Failure

which of the following firms is most likely to have significant market power?

• local restaurant
• local distributor of natural gas
• local book store
• clothing store

which if the following is a characteristic of an imperfect market?

• the firm faces competition from many other firms
• the firm produces a product that has many close substitutes
• there are barriers to enter the market
• the firms demand is perfectly inelastic

which barrier to entry is an exclusive right granted to the author or a literary or artistic work?

• patent
• copyright
• collusion
• government license

one of the requirements for a monopoly is that:

• products are high priced
• there is a product with no close substitutes
• the product cannot be produced by small firms
• there is no barrier to entry

a competitive market compared to an imperfect market, sells

• the same quantity at a higher price
• a smaller quantity as a higher price
• a larger quantity at a lower price
• a larger quantity at a higher price

an imperfect market creates a deadweight loss because it

• sets a price that is too low
• does not maximise profit
• produces less than the efficient quantity
• produces more than the efficient quantity