Question 1 1. A firm may become a monopoly if it controls the entire supply of a basicinput required to manufacture a product, has exclusive rights to make a product or use a particular process, and/or is awarded a market franchiseby a government agency.

Question 1

1. A firm may become a monopoly if it controls the entire supply of a basicinput required to manufacture a product, has exclusive rights to make a product or use a particular process, and/or is awarded a market franchiseby a government agency.

[removed]True

[removed]False

4 points  

Question 2

1. A firm's economic profit is usually higher than its accounting profit.

[removed]True

[removed]False

4 points  

Question 3

1. To affect sales, a monopolistic competitor can lower price or differentiatethe product.

[removed]True

[removed]False

4 points  

Question 4

1. A firm in a perfectly competitive industry may incur a short-term loss and yet continue producing in order to minimize losses.

[removed]True

[removed]False

4 points  

Question 5

1. Average fixed costs diminish continuously as output increases.

[removed]True

[removed]False

4 points  

Question 6

1. In general, the product price is higher in an oligopolistic market than thatof monopolistic competition. 

[removed]True

[removed]False

4 points  

Question 7

1. The monopolist produces a product for which there are no close substitutegoods.

[removed]True

[removed]False

4 points  

Question 8

1. Economies of scale is when the cost of producing a unit increases as itsoutput rate increases.

[removed]True

[removed]False

4 points  

Question 9

1. Economic profit involves total revenue minus the total costs, with total costmeasured as the opportunity costs of production.

[removed]True

[removed]False

4 points  

Question 10

1. Marginal costs will start to fall before average costs start to fall.

[removed]True

[removed]False

4 points  

Question 11

1. The short run is a period of time when all factor inputs are fixed.

[removed]True

[removed]False

4 points  

Question 12

1. Since there is free mobility of resources, the perfect competitor can freelymove in and our of a given perfectly competitive market.

[removed]True

[removed]False

4 points  

Question 13

1. Unlike the perfect competitor, who is a price taker, the monopolist is facedwith a demand curve such that he/she can charge whatever price he/shewishes.

[removed]True

[removed]False

4 points  

Question 14

1. The long-run average cost curve will be derived by adding up all the shortrun average total cost curves.

[removed]True

[removed]False

4 points  

Question 15

1. The four types of market structures we study in economics are perfectcompetition, monopolies, oligopolies, and corporations.

[removed]True

[removed]False

4 points  

Question 16

1. The demand which a monopolist is faced with is also the market demandfor the product.

[removed]True

[removed]False

4 points  

Question 17

1. A perfect competitor can reap an economic profit in the short run but notin the long run.

[removed]True

[removed]False

4 points  

Question 18

1. One of the objectives of the monopolist is to squeeze out smaller competitors from the market.

[removed]True

[removed]False

4 points  

Question 19

1. The average total cost curve on a graph will be found below the averagevariable cost curve.

[removed]True

[removed]False

4 points  

Question 20

1. A monopolist is different from a perfect competitor by the monopolist'sprice being equal to average revenue.

[removed]True

[removed]False

4 points  

Question 21

1. A perfectly competitive industry is characterized by a few producers, all producers produce a homogeneous product, and there is free mobilityof resources.

[removed]True

[removed]False

4 points  

Question 22

1. Total fixed cost curve shows that fixed costs vis-à-vis production levelsdon't change.

[removed]True

[removed]False

4 points  

Question 23

1. At least in theory, the more competition there is in the market, the greateralso is the efficiency in the economy.

[removed]True

[removed]False

4 points  

Question 24

1. A monopolistic competitor produces a differentiated product having numerous close substitutes.

[removed]True

[removed]False

4 points  

Question 25

1. Economic profit involves explicit costs, while accounting profits involveimplicit costs.

[removed]True

[removed]False