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Monopoly- microeconomics

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Monopoly power is high when

a)

There are no close substitutes

b)

There are no rivals

c)

There is only a single seller of the product

d)

All of the above

2.

The concept of pure monopoly was first given by

a)

Robinson

b)

Stigler

c)

Sraffa

d)

Chamberlain

3.

The term x-efficiency is coined by

(a)  

4.

Patent right for invention leads to

a)

Natural monopoly

b)

Fiscal monopoly

c)

Legal monopoly

d)

Technical monopoly

5.

Predatory pricing policy is designed to

a)

Drive competitors out of business

b)

Maximize profits

c)

Encourage entrants into the market

d)

Attain least cost output

6.

The lerner's index of monopoly power has a value

a)

Zero

b)

One

c)

Between zero to unity

d)

Two

7.

Pure monopoly may be based on

a)

Increasing return to scale

b)

Control over the supply of raw materials

c)

Patent or government franchise

d)

All of the above

8.

Under the monopoly MC is

a)

More than the price

b)

Less than the price

c)

Equal to the price

d)

All of the above

9.

In short run, the monopolists

a)

Incurs a loss

b)

Makes a profit

c)

Break even

d)

Any of the above

10.

The monopoly supply curve cannot be drawn simply because

a)

The monopolists itself control price

b)

He has no rivals

c)

The demand is indeterminate

d)

All of the above