微观经济学第十四章习题

Microeconomics - Testbank 1 (Hubbard/O'Brien) Chapter 14 Monopoly and Antitrust Policy

1) A monopoly is a seller of a product:

A) w ith many substitutes.

B) without a close substitute.

C) w ith a perfectly inelastic demand.

D) w ithout a a well-defined demand curve.

Answer: B

Diff: 1 Page Ref: 444

2) A monopolist is a seller who:

A) h as to consider the actions of other sellers.

B) i s small relative to the market.

C) c an ignore the threat of competition from other firms.

D) a ll of the above.

Answer: C

Diff: 2 Page Ref: 445

3) T he demand curve for the monopolist's product is:

A) t he market demand for the product.

B) m ore elastic than the market demand for the product.

C) m ore inelastic than the market demand for the product.

D) u ndefined.

Answer: A

Diff: 2 Page Ref: 451

4) T o sell more output, the monopolist:

A) o nly has to produce more.

B) h as to lower the product's price.

C) m ust lower production costs.

D) h as to advertise the product extensively.

Answer: B

Diff: 2 Page Ref: 452

5) T o keep a monopoly a firm must have:

A) a perfectly inelastic demand.

B) a n insurmountable barrier to entry.

C) m arginal revenue equal to demand.

D) a ll of the above.

Answer: B

Diff: 2 Page Ref: 445

6) A local electricity-generating company has a monopoly that is protected by a barrier

to entry that takes the form of:

A) c ontrol of a key raw material.

B) n etwork externalities.

C) e conomies of scale.

D) n one of the above.

Answer: C

Diff: 2 Page Ref: 450

7) A patent or copyright is a barrier to entry based on:

A) o wnership of a key necessary raw material.

B) l arge economies of scale as output increases.

C) g overnment action to protect one producer.

D) w idespread network externalities in supply of the good or service.

Answer: C

Diff: 2 Page Ref: 445

8) A public franchise is:

A) o wnership of a key necessary raw material.

B) g overnment ownership and operation of a legal monopoly.

C) g overnment designation that a private firm is the only legal producer of a good or

service.

D) a n unregulated monopoly necessary for the public good.

Answer: C

Diff: 2 Page Ref: 445

9) A public enterprise is:

A) a ny private business that is not-for-profit.

B) g overnment ownership and operation of a legal monopoly.

C) g overnment designation that a private firm is the only legal producer of a good or

service.

D) a n unregulated monopoly necessary for the public good.

Answer: B

Diff: 2 Page Ref: 445

10) A United States government patent lasts:

A) f orever.

B) 50 years.

C) 20 years.

D) 7 years.

Answer: C

Diff: 2 Page Ref: 446

11) G overnments grant patents to encourage:

A) r esearch and development on new products.

B) c ompetition.