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WorksheetsGIE1001 Monopoly
Total questions: 15
Worksheet time: 11mins
Which of these are company used to monopoly their market?
Netflix
AT&T
In 1938, De Beer hire N.W. Ayer to increase their sales. What is the idea of their advertisement?
Diamond symbols of wealth
Diamond is symbols of love
Diamond for life
What is the reason for De Beers to be called a monopoly company even though they only controls 80% of world’s production of diamond?
De Beers pays large amount of advertising to differentiate diamonds from other gems
There is close substitute for diamond such as emeralds, rubies and sapphire
De Beers is large enough to exert substantial influence over the market price of diamond
What is the changes of the De Beers’ market share from 1987 to 2019?
Getting increasing
Getting decreasing
Maintain consistent
Those are the incident that brings De Beer fail to monopoly the diamond market in 1990, EXCEPT
Mine in US broke off from cartel
Increasing popularity of synthetic diamonds
Soviet Union collapsed
Which of the following about monopoly is false?
Monopolistic firm is the only supplier of goods
The goods produced by a monopolistic firm has no close substitutes
Monopolies have no barriers to entry or exit
The Malaysian government has once allowed a monopolistic system in our electricity market. Is this true? Why?
No, because the Malaysian electricity grid has been commenced by two British individuals
Yes, because TNB (Tenaga Nasional Berhad) has acquired all the power plants from its predecessors
Yes, because the government has owned a public company which manages the electricity grid from the very beginning
How does Malaysian electricity market had evolved from a single-market monopoly to oligopoly?
The introduction of a single buyer model and leasing some power plants to independent power producers
The government provides different channels for the consumers to pay electricity bills
There have been new firms that are able to supply new technologies for the electricity production
How does TNB introduce price discrimination to all consumers?
By imposing different rates for different energy used in a single tariff system
By restricting the consumers into paying at a single channel
By forcing the customers in different areas to pay at different rates
If we compare a perfectly competitive market to a single-price monopoly with the same costs,
the monopoly sells
the same quantity at a higher price.
a smaller quantity at a higher price.
a smaller quantity at the same price.
Which of the following describes a barrier to entry?
something that establishes a barrier to expanding output
anything that protects a firm from the arrival of new competitors
firms already in the market incurring economic losses so that no new firm wants to enter
the market
A monopoly is a market with
many suppliers each producing an identical product.
one supplier.
many substitutes.
A monopoly produces a product ________ and there ________ barriers to entry into the market.
with no close substitutes; are
slightly different from those of its many competitors; are
identical to its many competitors; are no
Which of the following describes a barrier to entry?
firms already in the market incurring economic losses so that no new firm wants to enter
the market
anything that protects a firm from the arrival of new competitors
Firms are legally prohibited from exiting the market in order to enter another market.
Compared to the situation in which it sets a single price, a monopoly that price discriminates
________ its economic profit and ________ its output.
increases; increases
decreases; increases
increases; does not change
