WorksheetsMonopoly
Total questions: 6
Worksheet time: 2mins
Within the range of market demand, which of the following is consistent with the conditions of a natural monopoly?
Long run total cost decreases as output increases
Long run average total cost remains constant as output increases
Long run average total cost decreases as output increases
Marginal cost exceeds average cost
Setting price equal to marginal cost will maximize profits
A monopoly is a market with
many suppliers
no barriers to entry
many substitutes
one supplier
Which describes a barrier to entry?
something that establishes a barrier to expanding output
anything that protects a firm from new competitors
a regulation that bars a monopoly from earning profit
firms already in the market incur a loss so no firm wants to enter
A monopolist is
a price taker
able to ignore the demand for its product when setting price
able to set the price for its product
able to earn only a normal profit in the long run
If a monopolist wants to sell a larger quantity, it must
set a higher price
maintain the current price
set a lower price
implement new technology
An industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a
price-discrimination monopoly
single-price monopoly
natural monopoly
one-firm monopoly
