Question;45. A benefit to society of the patent and copyright laws is;that those laws;a. help to keep prices down.;b. help to prevent a single firm from acquiring ownership of;a key resource.;c. encourage creative activity.;d. discourage excessive amounts of output of certain;products.;46. When a single firm can supply a product to an entire;market at a smaller cost than could two or more firms, the industry is called a;a. resource industry.;b. exclusive industry.;c. government monopoly.;d. natural monopoly.;47. A natural monopoly arises when;a. there are constant returns to scale over the relevant;range of output.;b. there are economies of scale over the relevant range of;output.;c. one firm owns a key natural resource.;d. the government gives a single firm the exclusive right to;produce a particular good or service.;48. When a firm has a natural monopoly, the firm?s;a. marginal cost always exceeds its average total cost.;b. total cost curve is horizontal.;c. average total cost curve is downward sloping.;d. All of the above are correct.;49. It is possible for a natural monopoly to evolve into a;competitive market;a. as a market expands.;b. as patent and copyright laws change.;c. as technological advances give rise to economies of;scale.;d. None of the above are correct, it is not possible for a;natural monopoly to evolve into a competitive market.;50. The key difference between a competitive firm and a;monopoly firm is the ability to select;a. the level of competition in the market.;b. the level of production.;c. inputs in the production process.;d. the price of its output.;51. The market demand curve for a monopolist is typically;a. unitary elastic at the point of profit maximization.;b. downward sloping.;c. horizontal.;d. vertical.;52. When a firm operates under conditions of monopoly, its price;is;a. not constrained.;b. constrained by marginal cost.;c. constrained by demand.;d. constrained only by its social agenda.;53. In order to sell more of its product, a monopolist must;a. sell to the government.;b. sell in international markets.;c. lower its price.;d. use its market power to force up the price of;complementary products.;54. A natural monopolist's ability to price its product is;a. constrained by the market demand curve.;b. constrained by market supply.;c. not affected by market demand.;d. enhanced by regulatory control of the government.;55. Economists assume that monopolists behave as;a. cost minimizers.;b. profit maximizers.;c. price maximizers.;d. All of the above are correct.
Paper#57936 | Written in 18-Jul-2015Price : $22