Question :
15.1 Is Any Firm Ever Really a Monopoly?
1) The reason : 1387895
15.1 Is Any Firm Ever Really a Monopoly?
1) The reason that the Fisherman’s Friend restaurant in Stonington, Maine had a monopoly on selling seafood dinners in that town is most likely due to
A) a government-imposed barrier.
B) occupational licensing.
C) no competitors apparently found the profit level attractive enough to enter the market.
D) the restaurant owned all the fresh seafood in the state.
2) A monopoly is a seller of a product
A) with many substitutes.
B) without a close substitute.
C) with a perfectly inelastic demand.
D) without a well-defined demand curve.
3) If we use a narrow definition of monopoly, then a monopoly is defined as a firm
A) that has been granted special production rights by the government.
B) that can ignore the actions of all other firms because it produces a superior product compared to its rivals’ products.
C) that can ignore the actions of all other firms because it produces a product for which there are no close substitutes.
D) that has the largest market share in an industry.
4) Which of following is the best example of a monopoly if we use a broader definition of monopoly?
A) Spuds McKenzie, a wealthy potato farmer in Idaho
B) Cheap Gas, one of two gasoline stations in a large rural community
C) Santos Tacos, the only taqueria in the small town of Santosville
D) Zippie Rentals, a sports car rental service in the downtown Boston area
5) In Walnut Creek, California, there are three very popular supermarkets: Safeway, Whole Foods and Lunardi’s. While Safeway remains open twenty-four hours a day, Whole Foods and Lunardi’s close at 9 pm. Which of the following statements is true?
A) Safeway is a monopoly all day because it produces a service that has no close substitutes.
B) Safeway has a monopoly at midnight but not during the day.
C) Safeway can ignore the pricing decisions of the other two supermarkets.
D) Safeway probably has a higher markup to compensate for its higher cost of production.
6) A monopoly is characterized by all of the following except
A) there are only a few sellers each selling a unique product.
B) entry barriers are high.
C) there are no close substitutes to the firm’s product.
D) the firm has market power.
7) Peet’s Coffee and Teas produces some flavorful varieties of Peet’s brand coffee. Is Peet’s a monopoly?
A) Yes, there are no substitutes to Peet’s coffee.
B) No, although Peet’s coffee is a unique product, there are many different brands of coffee that are very close substitutes.
C) Yes, Peet’s is the only supplier of Peet’s coffee in a market where there are high barriers to entry.
D) No, Peet’s is not a monopoly because there are many branches of Peet’s.
8) In 2011, Microsoft filed a complaint with the European Commission accusing Google of taking steps to monopolize the Internet search engine business. Microsoft’s primary complaint was that
A) Google is the only Internet search engine available to Windows operating system users.
B) the European Union contracts exclusively with Google for its Internet search engine use.
C) Google was using its dominant position as an Internet search engine to exclude competitors.
D) Google owns the Internet advertising companies that pay for ads on search engine sites, and has prohibited ads from being sold to competitors.
9) A firm that has the ability to control to some degree the price of the product it sells
A) is also able to dictate the quantity purchased.
B) faces a demand curve that is inelastic throughout the range of market demand.
C) is a price maker.
D) faces a perfectly inelastic demand curve.
10) A monopolist faces
A) a perfectly elastic demand curve.
B) a perfectly inelastic demand curve.
C) a horizontal demand curve.
D) a downward-sloping demand curve.
