Relative to a competitively organized industry a monopoly ?

Related Mcqs:

1. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

   A. £35
   B. £15
   C. £30
   D. £60

2. Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?

   A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
   B. tradable pollution permits, Pigouvian taxes, command-and-control policies
   C. tradable pollution permits command-and-control policies, Pigovian taxes.
   D. command-and-control policies, tradable pollution permits, Pigovian taxes.
   E. They would all rank equally high because the same result can be obtained from any one of the policies

3. In a monopoly, marginal revenue is ?

   A. lower than price for all units other than the first
   B. less than price at low levels of output and greater than price at high levels of output
   C. always greater than price
   D. always equal to price

4. In monopoly when abnormal profits are made ?

   A. The price set is greater than the marginal cost
   B. The price is less than the average cost
   C. The average revenue equals the marginal cost
   D. Revenue equals total cost

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. 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

8. Compared to a perfectly competitive market a monopoly market will usually generate ?

   A. higher prices and lower output
   B. higher prices and higher output
   C. lower prices and lower output
   D. lower prices and higher output

9. Monopoly advantage is usually the result of greater opportunities such as ?

   I- access to more economic information than competitors
   II- superior access to training and education
   III- a lower discount of future earnings
   IV- larger firm size

   A. I and II only
   B. II and III only
   C. I, II and III only
   D. I, II, III, and IV

10. Groundnut crop is the monopoly of ____________?

    A. Indonesia
    B. Bangladesh
    C. Pakistan
    D. India