Question : 11) Compared to a monopolistic competitor, a monopolist faces A) : 1387896

11) Compared to a monopolistic competitor, a monopolist faces

A) a more elastic demand curve.

B) a more inelastic demand curve.

C) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.

D) a demand curve that has a price elasticity coefficient of zero.

12) A monopoly differs from monopolistic competition in that

A) a monopoly has market power while a firm in monopolistic competition does not have any market power.

B) a monopoly can never make a loss but a firm in monopolistic competition can.

C) in a monopoly there are significant entry barriers, but there are low barriers to entry in a monopolistically competitive market structure.

D) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.

13) Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?

A) Each must lower its price to sell more output.

B) Each sets a price for its product that will maximize its revenue.

C) Each maximizes profits by producing a quantity for which marginal revenue equals marginal cost.

D) Each maximizes profits by producing a quantity for which price equals marginal cost.

14) Consider the following characteristics:

a.a market structure with barriers to entry

b.demand curves that are easily identified

c.firm cannot make zero profits in the long run

d.firm can reap long-run profits.

Which of the characteristics in the list above is shared by an oligopolist and a monopolist?

A) a, b, c and d

B) a, b and d

C) a, c, and d

D) a and d

15) Few firms in the United States are monopolies because

A) few firms experience economies of scale.

B) of antitrust laws.

C) when a firm earns profits, other firms will enter its market.

D) most products that firms produce have substitutes.

16) A monopoly is a firm that is the only seller of a good or service that does not have

A) a patent.

B) a close complement.

C) a barrier to entry.

D) a close substitute.

17) A narrow definition of monopoly is that a firm is a monopoly if it can ignore

A) government antitrust laws.

B) the pricing decisions of its suppliers.

C) the pricing decisions of firms that produce complementary products.

D) the actions of all other firms.

18) Using a broad definition, a firm would have a monopoly if

A) it produced a product that has no close substitutes.

B) it does not have to collude with any other producer to earn an economic profit.

C) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.

D) it can make decisions regarding price and output without violating antitrust laws.

19) The Google search engine has a market share of ________ in the United States and ________ in Europe.

A) 90 percent; 25 percent

B) 50 percent; 50 percent

C) 70 percent; 90 percent

D) 45 percent; 15 percent

20) A monopoly firm is the only seller of a good or service that

A) has a perfectly elastic demand.

B) has no close complements.

C) does not need to be advertised.

D) does not have a close substitute.