Ch 14 Econ

If you can create a product that is very different from those of your rivals, you can raise your price because: Please choose the correct answer from the following choices, and then select the submit answer button. .

Answer choicescustomers are less likely to find a substitute product

How would the discount effect on marginal revenue differ for a seller increasing sales from 100 units to 101 units compared to an increase in sales from 1,000 units to 1,001 units? The discount effect would be the same in both situations and would be less than price. The discount effect would be smaller for a change from 100 to 101 units than 1,000 to 1,001 units. The discount effect would be the same in both situations and would be larger than price. The discount effect would be larger for a change from 100 to 101 units than 1,000 to 1,001 units.

The discount effect would be smaller for a change from 100 to 101 units than 1,000 to 1,001 units.

Patents on drugs to treat AIDS were removed in South Africa. How would the market for these drugs have been different if there had never been patents on drugs? The drug prices would have been even higher. The drug prices would have been lower from the start. The drugs would not have been developed. Larger quantities of the drugs would have been produced.

The drugs would not have been developed.

Why can a merger of two major companies benefit the firms involved, but not society? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesA merger can create perfect competition.A merger can increase market power, which harms society.A merger can yield more cost savings to consumers.A merger can increase the number of competitors in the industry.

a merger can increase market power, which harms society

A market with a large number of sellers and a high level of product differentiation is known as a monopolistically competitive market. a monopoly. an oligopoly. a perfectly competitive market.

a monopolistically competitive market.

Walmart has a large aisle that displays many different kinds of toothpastes. This observation indicates that the toothpaste market is a perfectly competitive market. a monopolistically competitive market. a monopoly. an oligopoly.

a monopolistically competitive market.

The government could prevent a natural monopoly from exploiting its market power by setting the price _____ the marginal cost. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

equal to

Managers can maximize profit by following the Rational Rule for Sellers, which states that production should continue until marginal revenue _____ marginal cost. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesis less thanis half ofis greater thanequals

equals

The interdependence principle is MOST important in: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesa market where buyers have little bargaining power.a monopoly.imperfect competition.perfect competition.

imperfect

The higher the level of market power among the sellers in a market, the _____ when the Rational Rule for Sellers is applied. lower the market output lower the market demand higher the marginal cost closer marginal revenue is to price

lower than market output

The higher the level of market power among the sellers in a market, the _____ when the Rational Rule for Sellers is applied.lower the market output lower the market demand higher the marginal cost closer marginal revenue is to price

lower the market output

If you have _____, you can raise your price without losing many customers. This means your firm's demand curve is _____.

market power; steeply downward sloping

A clothing company makes its own unique style of dress shirt and competes with other businesses that also sell dress shirts but do not have the same style. This type of market is an example of:

monopolistic competition

A market with a large number of sellers and a high level of product differentiation is known as a monopolistically competitive market. a monopoly. an oligopoly. a perfectly competitive market.

monopolistically competitive market

_____ using specific business practices that increase a seller's market power and excludes other sellers is illegal under U.S. law. Monopolizing Rationalizing Powering Differentiating

monopolizing

_____ using specific business practices that increase a seller's market power and excludes other sellers is illegal under U.S. law.MonopolizingRationalizingPoweringDifferentiating

monopolizing

ou own a company that does not have any direct competitors. You also have a lot of market power, allowing you to raise your price without losing much business. Which market structure are you in?

monopoly

The marginal revenue curve is a straight line that starts at the same point on the demand curve, and _____ the demand curve.

more sharply than

What type of relationship exists between the level of a company's market power and the price that its owner is able to charge for its product? negative opposing positive circular

positive

Perfect competition is rare because: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesthe market price is not profitable for most companies.there are antitrust laws put in place to prevent perfect competition from occurring.it makes more sense to operate in a monopoly.sellers rarely sell products that are identical to their competitors'.

sellers rarely sell products that are identical to their competitors'.

The difference between the firm demand curve and the marginal revenue curve is due to:

the discount effect

Patents on drugs to treat AIDS were removed in South Africa. How would the market for these drugs have been different if there had never been patents on drugs? The drug prices would have been even higher. The drug prices would have been lower from the start. The drugs would not have been developed. Larger quantities of the drugs would have been produced.

the drugs would not have been developed

One of the market failures caused by market power is high price. high costs. underproduction. reduced demand.

underproduction

The maximum price you can charge is all about:

what your customers are willing to pay

Which list correctly ranks firms from least market power to most market power?

farmer, computer manufacturer, airplane manufacturer

According to the Rational Rule for Sellers, a seller should choose the output level where _____ and the price level _____. marginal cost equals marginal revenue; that is on the seller's demand curve at that output level average total cost is minimum; that is associated with maximum revenue maximum revenue is obtained; that is on the seller's demand curve for that output sales are maximum; where revenue is maximum

marginal cost equals marginal revenue; that is on the seller's demand curve at that output level

In a particular suburban area, suppose customers have a lot of choices in internet providers. They can choose a variety of products from small local providers, regional providers, or national providers. What is the market structure for the internet services in this suburban area?

monopolistic competition

Walmart has a large aisle that displays many different kinds of toothpastes. This observation indicates that the toothpaste market is a perfectly competitive market. a monopolistically competitive market. a monopoly. an oligopoly.

monopolistically competitive market

How would the discount effect on marginal revenue differ for a seller increasing sales from 100 units to 101 units compared to an increase in sales from 1,000 units to 1,001 units? The discount effect would be the same in both situations and would be less than price. The discount effect would be smaller for a change from 100 to 101 units than 1,000 to 1,001 units. The discount effect would be the same in both situations and would be larger than price. The discount effect would be larger for a change from 100 to 101 units than 1,000 to 1,001 units.

smaller from 100 to 101