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