WorksheetsMONOPOLY
Total questions: 30
Worksheet time: 16mins
What is not an advantage of a monopoly?
achieving economies of scale
high level of research and development
Producing a greater quantity at profit-maximizing level of output
higher prices and lower output
A monopolist can produce at a level of output of either productive or allocative efficiency.
True
False
Which is not a type of a legal barrier?
patent
excise
trademark
copyrights
Which of the following is NOT a major barrier to entry for a monopolist?
control over a key input
patent protection
economies of scale
product differentiation
Monopolies are always guaranteed to make a profit.
True
False
Which of the following is not a barrier to entry in a monopolized market?
The presence of many buyers and sellers in the market
The government gives a single firm the exclusive right to produce some good.
The costs of production make a single producer more efficient than a large number of producers.
A key resource is owned by a single firm.
What is not an advantage of a monopoly?
achieving economies of scale
high level of research and development
Producing a greater quantity at profit-maximizing level of output
higher prices and lower output
A monopoly is a market with
many suppliers
no barriers to entry
many substitutes
one supplier
A barrier to entry is
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
A type of monopoly that arises because a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.
Monopoly
Natural Monopoly
Price Discrimination
Cartel
Monopolists are price takers.
True
False
A monopoly is the sole seller of a product with no close substitutes.
True
False
Use the following statements to answer this question:
I. Markets that have only a few sellers cannot be highly competitive.
II. Markets with many sellers are always perfectly competitive.
I and II are true.
I is true and II is false.
II is true and I is false.
I and II are false.
The idea of perfect competition is describes as which of the following?
A market structure in which consumers and sellers respond to regulations imposed upon the market
An ideal market structure in which consumers and sellers producers each compete directly and fully under the laws of supply and demand
A market structure in which a few large firms control the means of production
A market in which a single firm controls the competition, sets prices, and owns all means of production.
Which of the following is NOT one of the four conditions of perfect competition?
Many actors (consumers and producers)
Similar products
Widespread information available to consumers and producers
Low barriers to entry and exit of market
The greater the competition in market, the greater the profit
True
False
Neither
Which of the following is not a suitable method for measuring the size of a firms?
The number of employees
the size of the profit
the amount of capital employed
the size of turnover
Which of the following is not an advantage of a small firm?
Better communication
flexibility
economies of scale
a personal service can be offered
Which of the following is a disadvantage of small firms?
economies of scale
lack of finance
too bureaucratic
poor worker motivation
which of the following is not an advantage of a large firm?
market domination
economies of scale
better communication
can undertake large scale contracts
Which of the following is a disadvantage of large firms?
lack of finance
higher average costs
difficult attracting staff
too bureaucratic
which of the following is an advantage of a small firms?
can benefit from economies of scale
ability to offer a personal service
can access a greater range of finance options
can attract the most qualified and experience staff
Which of the following is not a disadvantage of a small firm?
struggle to raise finance
difficult to attract highly qualified and experienced staff
can adapt more quickly to change
cannot exploit economies of scale
Which of the following is not an advantage of a large firm
can win large scale highly profitable contracts
lower average costs due to size
personal contact may be lacking impacting on employee motivation
can dominate a market and have a high public profile which they can exploit
Which of the following factors encourage firms to grow?
poor access to sources of finance
desire to spread risk
government regulation monitoring levels of competition in a market
global economic instability
Which of the following questions is associated with the basic economic problem?
when to produce?
who should produce?
what to produce?
where should production be located?
which of the following might be considered a need rather than a want?
holiday
shelter
smartphone
pet cat
