微观经济学第十四章习题.docVIP

Microeconomics - Testbank 1 (Hubbard/OBrien) Chapter 14 Monopoly and Antitrust Policy 1)  A monopoly is a seller of a product: A)  with many substitutes. B)  without a close substitute. C)  with a perfectly inelastic demand. D)  without a a well-defined demand curve. Answer:  B Diff: 1  Page Ref: 444 2)  A monopolist is a seller who: A)  has to consider the actions of other sellers. B)  is small relative to the market. C)  can ignore the threat of competition from other firms. D)  all of the above. Answer:  C Diff: 2  Page Ref: 445 3)  The demand curve for the monopolists product is: A)  the market demand for the product. B)  more elastic than the market demand for the product. C)  more inelastic than the market demand for the product. D)  undefined. Answer:  A Diff: 2  Page Ref: 451 4)  To sell more output, the monopolist: A)  only has to produce more. B)  has to lower the products price. C)  must lower production costs. D)  has to advertise the product extensively. Answer:  B Diff: 2  Page Ref: 452 5)  To keep a monopoly a firm must have: A)  a perfectly inelastic demand. B)  an insurmountable barrier to entry. C)  marginal revenue equal to demand. D)  all of the above. Answer:  B Diff: 2  Page Ref: 445 6)  A local electricity-generating company has a monopoly that is protected by a barrier to entry that takes the form of: A)  control of a key raw material. B)  network externalities. C)  economies of scale. D)  none of the above. Answer:  C Diff: 2  Page Ref: 450 7)  A patent or copyright is a barrier to entry based on: A)  ownership of a key necessary raw material. B)  large economies of scale as output increases. C)  government action to protect one producer. D)  widespread network externalities in supply of the good or service. Answer:  C Diff: 2  Page Ref: 445 8)  A public franchise is: A)  ownership of a key necessary raw materia