Economics Test 11/12/19

All of the following are characteristics of a monopolistic market EXCEPT

a monopolist has no control over price

A firm maximizes its profit, or minimizes its loss, when marginal revenue equals

MC

How does a firm become a legal monopoly?

All of these are ways a firm may become a legal monopoly

People who abuse public goods without helping pay for them are called

free riders

Which of the following markets most closely resembles monopoly?

Diamonds

Which of the following is an example of a government monopoly?

United States Postal Service

Monopolistic competition is similar to perfect competition because both market structures have

a large number of firms

Which of the following markets most closely resembles perfect competition?

agriculture

If the government decides a monopoly is necessary, it can

both a)take public ownership of the firm and b)regulate the price that a monopolist can charge

A legal monopoly may be created

by issuing patents or copyrights

A price-taking firm

cannot affect the market price of its product

The costs incurred by a firm when no output is being produced are called

fixed costs

Firms in monopolistic competition spend a lot on advertising because it

is a good way to differentiate their products to consumers

A monopolist is considered a price maker because he

is able to affect price by changing output

All of the following are characteristics of oligopoly EXCEPT

it is not possible to make profit in the long or short run

All of the following are characteristics of a perfectly competitive market EXCEPT

limited entry and exit

What do we call the cost producing one more unit?

marginal cost

What do we call the revenue received by a firm for selling one more unit?

marginal revenue

Which has many sellers that don't compete in price but compete in differentiating their product?

monopolistic competition

Which market has only one seller?

monopoly

Which market has only a few sellers that dominate the market, such the automotive industry?

oligopoly

Which of the following is NOT one of the types of markets we discussed?

oxymoron

Which market produces the lowest prices and highest quality goods?

perfect competition

What do we call firms in a competitive market?

price takers

What is meant by the phase "Tragedy of the Commons"?

private individuals can't fairly allocate public goods

Branding is an important phenomenon for consumers because it

provides information and quality assurance

Which of the following would NOT be variable cost for a firm?

rent

What do we call legal protection to exclusively use a specific logo or artistic design?

trademark

What do we call costs that change with output?

variable costs