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WorksheetsCh 11 - Legal Aspects of Business / Monopolies
Total questions: 25
Worksheet time: 13mins
A monopoly is when:
One seller/business dominates an industry.
A few sellers/businesses dominate an industry.
Supply exceeds demand.
A business offers special gifts and coupons.
Why are monopolies usually illegal in the US?
They deprive the consumer of choices.
They force the consumer to pay high prices.
They make it difficult for new companies to enter the market.
All of the above.
Why do natural monopolies occur?
A: It's logistically impossible for new companies to enter the market.
B: It's too expensive for other companies to enter the market.
C: The existing company retaliates against new companies.
D: Both A&B are correct.
In an oligopoly...
One seller dominates the market
A few sellers dominate the market
Many sellers are in the market
No sellers exist in the market
One of the requirements for a monopoly is that
products are high priced
there are several close substitutes for the product
there is a unique product with no close substitutes
the product cannot be produced by small firms
The game console industry is an example of which market structure?
Monopoly
Pure Competition
Oligopoly
Monopolistic competition
Which of the following describes the selling of the same product to different consumers at different prices?
Price discrimination
Interdependent Pricing
Price competition
The Price is Right with Bob Barker
What are zoning laws?
Laws that allow zone defense
Local regulations that specify where certain types of economic activity can exist
Laws that allow public utilities to be monopolies
Deregulation at the local level
The Sherman Antitrust Act was passed to -
allow workers the right to unionize to help their demands be met by business owners
prevent companies from having monopolies on goods or services
help accelerate America’s economy so we would not slip into an economic recession
stop entrepreneurs from creating more businesses
Public Water is and example of......
Pure Monopoly
Geographic Monopoly
Natural Monopoly
Technological Monopoly
a market that runs most efficiently when one large firm provides all of the output
natural monopoly
patent
license
price discrimination
a government license that gives the inventor of a new product the exclusive right to produce and sell it
patent
license
market power
economies of scale
Which of the following is an example of a natural monopoly?
Coca-Cola
City of McKinney water service
United Airlines
Levi Jeans
An author’s right to sell, publish, or reproduce his or her works for a specified number of years.
copyright
patent
cartel
oligopoly
One goal of the United States government has been to
protect monopolies
promote mergers
encourage competition in the economy
discourage competition in the economy
A video store merging with another video store is an example of
conglomerate
vertical merger
horizontal merger
competition
An oil company merging with a refinery company is an example of a(n)
interlocking directorate
horizontal merger
vertical merger
conglomerate
Combined company that results when one corporation buys more than half the stock of another corporation.
Interlocking directorate
Merger
Deregulation
Conglomerate
The airline industry is a good example of this
pure monopoly
oligopoly
monopolistic competition
perfect competition
An agency that aims to promote free and fair competition in the market place is known as.....
HUD Housing and Urban Development
BBB Better Business Bureau
EPA Environmental Protection Agency
FTC Federal Trade Commission
