Q1: Imperfect competition can best be described as a situation in which Select o
ID: 1174009 • Letter: Q
Question
Q1: Imperfect competition can best be described as a situation in which
Select one:
a. a few large firms produce and sell a particular product.
b. many firms produce and sell a product.
c. only one firm produces and sells a product.
d. firms exercise some monopoly power.
e. none of the choices.
Q2: The dead-weight welfare loss due to monopoly
Select one:
a. results from the monopolist's tendency to reduce output below the competitive level.
b. is a measure of the cost to society from the monopolistic misallocation of resources.
c. is estimated to be about 1% of GDP per year.
d. is a loss to consumers not offset by anyone else's gain.
e. all of the choices.
Q3:
Which of the following is a barrier to entry?
Select one:
a. Import restrictions
b. Copyright laws
c. Exclusive franchises
d. Zoning ordinances
e. All of the choices
Q4:
A cartel will maximize joint profits by selecting the total market output that is
Select one:
a. equal to the output in a competitive market, but with higher prices.
b. lower than the output produced by a single firm monopoly.
c. lower than the output produced in a competitive market, but with lower prices.
d. equal to the output in a single firm monopoly, and at the same price as a monopoly.
e. higher than a single firm monopoly and at higher prices.
Q5: Compared to monopoly markets, cartels should have what impact on deadweight losses?
Select one:
a. Increase deadweight losses associated with monopoly markets since there are more firms.
b. Decrease deadweight losses associated with monopoly markets since there are more firms.
c. Eliminate deadweight losses, because this effect is the result of having a single firm in the market.
d. Reduce deadweight losses, since cartels produce more output than a monopoly.
e. Have no impact on deadweight losses, since cartels will produce the same output as a monopoly.
Explanation / Answer
1. The correct answer is D.
2. The correct answer is A.
3. The correct answer is E.
4. The correct answer is D.
5. The correct answer is A.
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