WorksheetsTYPES OF MARKET STRUCTURE: MONOPOLY
Total questions: 15
Worksheet time: 8mins
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
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
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
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
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
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
Monopolist can control
price
output
both
nothing
Which of the following is a characteristic of a single-price monopoly?
The firm is a price taker.
Demand is perfectly elastic.
There are many close substitutes for the firm's product.
The market price exceeds marginal revenue.
If a monopoly firm practices price discrimination the firm will _____________.
earn smaller profit
produce lower quantity than before price discrimination
charge a higher price when demand is inelastic and a lower price when demand is elastic
charge a higher price when demand is elastic and a lower price when demand is inelastic
A monopoly can price discriminate between two groups of consumers if each group has
a large consumer surplus.
a different willingness to pay.
the same willingness to pay.
the ability to resell the good to the other group.
In June, Ross decides to sell ice cream from a kart on the street. First he goes to 1st street and sells his icecreams for $2 each. The next day Ross decides to go to 2nd street and he realises he can get a higher price for his product. So he charges $5 per ice cream. What is this an example of?
Rule of reason
Monopoly
Pure genius
Price discrimination
A grocery store that offers one can of soup for $0.35 and three cans for $1.00 is engaging in
Perfect price discrimination
Discrimination among quantities
Discrimination among buyers
