Self-Quiz Unit 4 - Chapter 10 Attempt review PDF

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Self-Quiz Unit 5 - Chapter 10: Monopoly for Econ 1580...

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10/13/21, 1:07 PM

Self-Quiz Unit 4 - Chapter 10: Attempt review

Dashboard / My courses / ECON 1580 - AY2022-T1 / 23 September - 29 September / Self-Quiz Unit 4 - Chapter 10

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Monday, 27 September 2021, 2:15 PM

State Finished Completed on Time taken

Monday, 27 September 2021, 2:20 PM 5 mins 1 sec

Grade 9.00 out of 10.00 (90%) Question

1

Correct Mark 1.00 out of 1.00

A natural monopoly is most likely to result if a single firm:

Select one: a.

is the only seller in a community.

b. is investor-owned, but is granted the exclusive right by the government to operate in a market. c.

experiences economies of scale over a wide range of output.



d. has gained control over a strategic input of an important production process.

The correct answer is: experiences economies of scale over a wide range of output.

Question

2

Correct Mark 1.00 out of 1.00

A location-based monopoly is most likely to result if a single firm:

Select one: a.

is the only seller in a small town or community.



b. is investor owned, but granted the exclusive right by the government to operate in a market. c.

experiences long-run increasing economies of scale over a wide range of output.

d. has gained control over a strategic input of an important production process.

The correct answer is: is the only seller in a small town or community.

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10/13/21, 1:07 PM Question

Self-Quiz Unit 4 - Chapter 10: Attempt review

3

Correct Mark 1.00 out of 1.00

Situations in which the more users of a product there are, the more useful the product becomes are called:

Select one: a.

network effects.



b. monopolies. c.

conglomerates.

d. exclusive franchises.

The correct answer is: network effects.

Question

4

Correct Mark 1.00 out of 1.00

A firm that faces a downward-sloping demand curve:

Select one: a.

is a perfectly competitive firm.

b. is a price taker. c.

has some monopoly power.



d. cannot sell more at lower prices.

The correct answer is: has some monopoly power.

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2/5

10/13/21, 1:07 PM Question

Self-Quiz Unit 4 - Chapter 10: Attempt review

5

Incorrect Mark 0.00 out of 1.00

In this exhibit (Demand, Elasticity, and Total Revenue), when price is P and quantity is Q in Panel (a), which of the following is (are) true?

Select one: a.

An increase in price will increase total revenue.

b. A decrease in price will increase total revenue. c.

P x Q is the maximum amount TR can be.

d. B and C are true.



The correct answer is: P x Q is the maximum amount TR can be.

Question

6

Correct Mark 1.00 out of 1.00

Assume that Sandy Chip Products, Inc. is the world's only producer of a special kind of computer chip. Its patents assure that it will continue to be the only producer for at least the next decade. Chip production requires clean water. The firm gets its water from a river, which is being polluted by paper mills located upstream. Sandy Chip therefore has to process the water before using it. A recently enacted pollution-control program, whereby the paper mills will be fined for polluting the river, will result in less pollution and thus lower Sandy Chip's costs. Sandy Chip expects its marginal and average cost to fall by $20 per chip. With the reduction in its costs, Sandy Chip will probably:

Select one: a.

lower its price by $20.

b. lower its price, but by less than $20. c.



lower its price, but by more than $20.

d. It is not possible to make a determination from the information given.

The correct answer is: lower its price, but by less than $20. https://my.uopeople.edu/mod/quiz/review.php?attempt=5638611&cmid=259896

3/5

10/13/21, 1:07 PM Question

Self-Quiz Unit 4 - Chapter 10: Attempt review

7

Correct Mark 1.00 out of 1.00

In this exhibit (Monopoly Model), when the firm is in equilibrium (that is, maximizing its economic profit), its total revenue is the area of rectangle:

Select one: a.

SPDB.

b. IPDH. c.

0SBJ.

d. 0PDJ.



The correct answer is: 0PDJ.

Question

8

Correct Mark 1.00 out of 1.00

Which of the following is true regarding monopoly?

Select one: a.

Monopolies produce too much and charge too much from the standpoint of efficiency.

b. Monopolies usually are economically efficient because they have economic profits with which to work. c.

Monopolies produce too little and charge too much from the standpoint of efficiency.



d. Monopolies create an efficiency problem but are not associated with an equity problem.

The correct answer is: Monopolies produce too little and charge too much from the standpoint of efficiency.

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4/5

10/13/21, 1:07 PM Question

Self-Quiz Unit 4 - Chapter 10: Attempt review

9

Correct Mark 1.00 out of 1.00

In contrast to a monopoly firm, a perfectly competitive firm:

Select one: a.



is a price taker.

b. faces a downward-sloping demand curve. c.

has only a moderate degree of monopoly power.

d. produces more than the efficient level of output.

The correct answer is: is a price taker.

Question

10

Correct Mark 1.00 out of 1.00

A feature of monopoly that leads to unfavorable consequences is that it:

Select one: a.

reduces income inequality. 

b. sets marginal cost equal to marginal revenue rather than price. c.

produces more output than if perfectly competitive firms characterized the same industry.

d. charges a lower price than if perfectly competitive firms characterized the same industry.

The correct answer is: sets marginal cost equal to marginal revenue rather than price.

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