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1 | |
A perfect competitor has |
| | A) | many competitors. |
| | B) | more than one but not many. |
| | C) | several competitors producing slightly varied products. |
| | D) | no competitors. |
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2 | |
A monopolist has |
| | A) | many competitors. |
| | B) | more than one but not many. |
| | C) | several competitors producing slightly varied products. |
| | D) | no competitors. |
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3 | |
An oligopolist has |
| | A) | many competitors. |
| | B) | more than one but not many. |
| | C) | several competitors producing slightly varied products. |
| | D) | no competitors. |
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4 | |
A monopolistic competitor has |
| | A) | many competitors. |
| | B) | more than one but not many. |
| | C) | several competitors producing slightly varied products. |
| | D) | no competitors. |
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5 | |
The PC industry is made up of several (Dell, Gateway, HP, Compaq, IBM, Toshiba, Sony etc.) producers. Each has a monopoly on their particular brand but their computers are nearly identical to those of their competitors. Thus the best model for this industry is |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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6 | |
The cell-phone industry is made up of several (Cellular One, Sprint PCS, US Cellular, Voicestream etc.) service providers. Each has a monopoly on their particular brand but their service is nearly identical to that of their competitors. Thus the best model for this industry is |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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7 | |
The two companies that delivers satellite radio services through to receivers in homes and cars have no other competition in that niche. Therefore that niche of the radio market is best described by |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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8 | |
The Dish Network and Directv are the only providers of small-dish satellite service. The best model for this industry is |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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9 | |
There are thousands of apple growers in the northern climates of the United States. The best model for this industry is |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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10 | |
You are likely served by one and only one local telephone company, the best model for this industry is |
| | A) | monopoly. |
| | B) | perfect competition. |
| | C) | oligopoly. |
| | D) | monopolistic competition. |
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11 | |
Accounting profit and economic profit are different in that |
| | A) | accounting profit simply looks at revenue minus actual cost whereas economic profit looks at opportunity costs as well. |
| | B) | accounting profit includes all costs whereas economic profit does not. |
| | C) | economic profit is always higher than accounting profit. |
| | D) | labor costs are ignored in economic profit. |
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12 | |
Entry makes it so that |
| | A) | accounting profit goes to zero. |
| | B) | accounting profit is less than economic profit. |
| | C) | economic profit goes to zero. |
| | D) | economic profit stays positive. |
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13 | |
There is no mechanism for economic profit to go to zero under |
| | A) | perfect competition. |
| | B) | monopoly. |
| | C) | monopolistic competition. |
| | D) | Capitalism. |
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14 | |
The reason that economic profit goes to zero under perfect competition and monopolistic competition is that |
| | A) | there is relatively easy entry in perfect competition and monopolistic competition. |
| | B) | monopolists make little profit. |
| | C) | the profits to oligopolists and monopolists are highly variable. |
| | D) | profits only motivate oligopolists and monopolists. |
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15 | |
The reason that economic profit does not go to zero under monopoly and oligopoly is that |
| | A) | entry is legally or economically difficult in monopoly and oligopoly. |
| | B) | monopolists and oligopolists make little profit. |
| | C) | the profits to oligopolists and monopolists are highly variable. |
| | D) | profits only motivate perfect competitors and do no influence monopolists. |
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2003 McGraw-Hill Higher Education