7. Quiz 2

A market structure with a large number of sellers who make differentiated products is called _____. -oligopoly -monopolistic competition -perfect competition

-monopolistic competition

Sam's Electric is the only supplier of electricity in the market and provides a good with no close substitutes. The market for electricity is an example of _____. -perfect competition -monopoly

-monopoly

Select all that apply. Which of the following describe what producers offer as they compete for more customers? -more advertising -better customer service -higher prices -better product quality

-more advertising -better customer service -better product quality

In perfect competition, producers _____ the price determined by buying and selling decisions in the marketplace. -make -take

-take

Select all that apply. Jerry's Phone Service is a monopoly. Select the items that describe the price and quantity chosen by Jerry. -will result in equilibrium price -will cause shortage of goods -will result in efficient use of resources -will maximize profits

-will cause shortage of goods -will maximize profits

Jerry's Phone Service is a monopoly. To find the amount of phone service that this company will provide, Jerry finds the point at which marginal revenue equals _____. -profits -marginal cost -fixed costs

-marginal cost

A monopolist's goal is to _____. -lose money -just cover costs -maximize profits

-maximize profits

Suppose barriers to entry exist in the telecommunications industry. This best describes a _____ market. -perfectly competitive -monopolistic

-monopolistic

_____ benefit(s) from large economies of scale, in which the costs of goods decrease as output increases. -Natural monopolies -Perfect competition

-Natural monopolies

A producer in a monopoly will charge _____ price for jeans than a jeans producer in a competitive market. -a higher -the same -a lower

-a higher

ABC Carpets is a single seller that produces a good with no close substitutes. ABC Carpets has _____ of the carpet's market share. -all -none -half

-all

The main difference between perfect competition and imperfect competition involves _____. -types of consumers -the structure of the company -control over price

-control over price

Producers want to charge prices that _____ and, they hope, earn profits. -increase fixed costs -cover their costs -decrease market share

-cover their costs

Jerry's Phone Service is a monopoly. Jerry finds the price of his service by looking at the price _____ at the chosen quantity. -supplied -demanded

-demanded

You produce T-shirts, and it costs $3 to make each shirt. If you choose a price of $5 for each shirt, then you will _____. -just cover your costs -earn a profit -lose money

-earn a profit

You open a clothing business and have to pay rent even if you do not produce any clothing. Rent is a _____. -profit -variable cost -fixed cost

-fixed cost

Perfect competition has _____ sellers. -many -no -one

-many