30) If a government grants monopoly power through a patent, it may beneficial fr

Question

30) If a government grants monopoly power through a patent, it may beneficial from a social perspective because: 30) ______ A) it may insure less consumer products. B) it may encourage higher standards of professional ethics. C) it may encourage the development of new products. D) it may keep down monopoly profits.

31) In a perfectly competitive market, the firm specific demand curve is ________ at the market price, compared to in a monopolistically competitive market, the firm specific demand curve is ________. 31) ______ A) positively sloped; negatively sloped B) negatively sloped; positively sloped C) horizontal; negatively sloped D) negatively sloped; horizontal

32) In some monopolistically competitive markets, differentiation is obtained simply by location. Which of the followings is NOT a good sample of differentiation by location? 32) ______ A) restaurants B) movie theaters C) music stores D) gas stations

33) By using celebrities to promote a product, a firm is attempting to: 33) ______ A) increase sales. B) send a signal to consumers. C) increases repeat customers. D) all of these

34) The demand for a product of a monopolistically competitive firm is: 34) ______ A) price elastic. B) price inelastic. C) unit elastic. D) undefined.

35) An oligopoly could occur for the following reasons: 35) ______ A) government barriers to entry.B) advertising campaigns. C) economics of scale in production. D) all of the above 36) Which of the following is the best example of an oligopolistic industry?

36) ______ A) local water utility B) designer shoes C) cleaning services D) airline services 37) If the government sets a maximum price for a natural monopolistic firm then a change in production cost will:

37) ______ A) increase the firm's profits. B) prevent the firm to earn economic profit in the short run. C) decrease the firm's profits. D) have little effect on the firm's profit. 38) A small supply of workers in a particular occupation could be due to:

38) ______ A) high training costs. B) artificial barriers to entry. C) few people with the required skills. D) all of the above. Table 17.2

39) Refer to Table 17.2. The maximum wage per day that this profit-maximizing T-shirt manufacturer would be willing to pay to hire three workers per day is: 39) ______ A) $15. B) $125. C) $75. D) $200.

40) Assume Edward considers eating out to be a normal good. The income effect of a wage increase for Edward implies that Edward's demand for eating out will be ________ and Edward's labor supply will be ________. 40) ______ A) higher; higher B) higher; lower C) lower; higher D) lower; lower

Explanation / Answer

30. C

31. C

32. A

33. D

34. A

35. D

36. D

37. C

38. D

39. B

40. A

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