A welfare loss occurs in monopoly where ?

Related Mcqs:

1. Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?

   A. increase
   B. decrease
   C. not change
   D. None of These

2. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

   A. R&D generating welfare improved technology
   B. development of more productive machinery
   C. new work rules promoting workers efficiency
   D. lower wages extracted from workers

3. The form of dumping that represents the greatest potential net welfare loss the for importing national is ?

   A. predatory dumping
   B. sporadic dumping
   C. persistent dumping
   D. yearend dumping

4. In monopoly which of the following is true ?

   A. There are many buyers and sellers
   B. There is one main buyer
   C. There is one main seller
   D. The actions of one firm do not affect the market price and quantity

5. A monopoly is able to continue to generate economic profits in the long run because ?

   A. there is some barrier to entry to that market
   B. Potential competitors sometimes don’t notice the the profits.
   C. the monopolist is financially powerful.
   D. antitrust laws eliminate competitors for a specified number of years.
   E. of all of the things described in these answers

6. Which of the following is a characteristic of pure monopoly ?

   A. One seller of the product
   B. low barriers to entry
   C. close substitute products
   D. perfect information

7. Which of the following is necessary for a natural monopoly ?

   A. economies of scale
   B. a high proportion of the total cost in the cost of capital goods
   C. the market is very small
   D. all of the above

8. The marginal revenue curve in monopoly ?

   A. Equals the demand curve
   B. Is parallel with the demand curve
   C. Lies below and converges with the demand curve
   D. Lies below and diverges from the demand curve

9. If regulators break up a natural monopoly into many smaller firms, the cost of production ?

   A. will rise
   B. will fall
   C. will remain the same
   D. could either rise or fall depending on the elasticity of the monopolist’s supply curve

10. In pure monopoly, what is the relation between the price and the marginal revenue ?

    A. the price is greater than the marginal revenue
    B. the price is less than the marginal revenue
    C. there is no relation
    D. they are equal