A. A single firm is very large
B. The government gives a single firm the exclusive right to produce some good
C. The costs of production make a single producer more efficient than a large number of productions
D. A key resource is owned by a single firm
Related Mcqs:
- Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination - What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 – 1984 ?
A. export quotas imposed by the Japanese government
B. export tariffs imposed by the Japanese’s government
C. import quotas imposed by the U.S government
D. domestic subsidies granted by the U.S government - Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ?
A. an import tariffs
B. a tariff rate quota
C. a selective quota
D. a global quota - Gunnar Myrdal argues that a major barrier to high labor productivity is ?
A. due to a lack of education
B. a class system in which the elite are contemptuous of manual work
C. upper-and middle-class westerners
D. The lack of bargaining power y cheap labor - There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
A. Grey market
B. Over-the counter (OTC)
C. Open market
D. Back market - If a producer has market power (can influence the price of the product in the market) then free market solutions ?
A. are equitable.
B. are efficient
C. maximize consumer surplus
D. are inefficient - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic - Barriers to entry do not include ?
A. Patents
B. Internal economies of scale
C. Mobility of resources
D. High investment costs - Barriers to entry ?
A. Enable abnormal profits to be made in the long run
B. Enable losses to be made in the long run
C. Enable abnormal profits to be made in the short run only
D. Occur in perfect competition
