Question : 11) Which of the following firms most likely to be : 1226222

11) Which of the following firms is most likely to be a monopoly?

A) local restaurant

B) local distributor of natural gas

C) local book store

D) clothing store

E) local bank

12) An example of a monopoly would be

A) one of many U.S. wheat farmers.

B) one of the few U.S. auto makers.

C) AT&T cell phone service.

D) the local water company.

E) Taco Bell

13) Which of the following describes a barrier to entry?

A) something that establishes a barrier to expanding output

B) anything that protects a firm from the arrival of new competitors

C) a government regulation that bars a monopoly from earning an economic profit

D) firms already in the market incurring economic losses so that no new firm wants to enter the market

E) Firms are legally prohibited from exiting the market in order to enter another market.

14) A barrier to entry is

A) the economic term for diseconomies of scale.

B) illegal in most markets.

C) anything that protects a firm from the arrival of new competitors.

D) a factor that increases competition because firms must continue to operate in the market in which they were founded.

E) the same as rent seeking.

15) A natural barrier to entry is defined as a barrier that arises because of

A) technology that allows one firm to meet the entire market demand at lower average total cost than could two or more firms.

B) patents or licenses that exclude others from producing a good or service.

C) many firms producing the good and thereby allowing choice for all consumers.

D) anticompetitive practices by a firm that keep other firms from producing.

E) one firm owning a key natural resource.

16) Natural barriers to entry arise when, over the relevant range of output, there

A) are diseconomies of scale.

B) are constant returns to scale.

C) are several firms who produce at the lowest average cost.

D) are economies of scale.

E) is one firm that owns a key natural resource.

17) A natural monopoly exists when

A) diseconomies of scale exist in an industry.

B) one firm can supply an entire market at a lower average total cost than can two or more firms.

C) a firm can engage in price discrimination.

D) the producers in an industry have formed a cartel.

E) a monopoly firm faces a horizontal demand curve.

18) If a single firm can meet the entire market demand at a lower average total cost than a larger number of smaller firms, the single firm is

A) price discriminating.

B) a natural monopoly.

C) a legal monopoly.

D) efficient when profit maximizing.

E) an ownership-of-the-market monopoly.

19) A natural monopoly is one that arises from

A) patent law.

B) economies of scale.

C) copyright law.

D) any government-imposed barrier to entry.

E) mergers.

20) A natural monopoly

A) arises as a result of legal barriers to entry.

B) occurs when one firm controls a natural resource.

C) arises when one firm can meet the entire market demand at a lower average total cost than two or more firms.

D) Both answers A and B are correct.

E) Both answers A and C are correct.