Monopoly
Monopoly pt. 2
Other
Market Structures
Market Structures
Monopoly
(board game)
(board game)
MCQs
200
Example of a legal barrier of entry?
a patent or trademark
200
Price makers or price takers?
Price makers
200
Are firms in perfect competition price makers or price takers?
Price takers
200
How much money do you receive after passing go?
$200
200
A monopolistic firm is MOST likely to do which of the following?
- Allow itself to be too influenced by consumer demands.
- Devote too much time to minimizing production costs.
- Restrict output below socially desirable levels.
- Set prices as high as the market will tolerate.
- Restrict output below socially desirable levels.
300
What is the main competition of monopolistic firms?
None, monopolies have no competition
300
Name 2 reasons why barriers to entry are high in this market
legal barriers (patents/trademarks), brand loyalty, anti-competitive behavior
300
In which form of market structure would price be the key factor when competing?
Perfect Competition
300
What is the name of the most expensive property?
Boardwalk
300
A firm that is given exclusive rights by the government to provide a particular service in a particular area is BEST termed...
- the market demand curve is downward sloping to the right.
- a franchise monopoly.
- a natural monopoly.
- a pure monopoly.
- a franchise monopoly.
400
The monopolist can set a price well above the competitive supply and demand level by
restricting output
400
Draw a monopoly graph
400
What is a perfectly competitive firm’s profit maximizing quantity?
when P=MC
400
What color are the houses in the classic version of Monopoly?
Green
400
A natural monopoly is MOST likely to occur whenever...
- the market demand curve is downward sloping to the right.
- the market demand curve is horizontal.
- production costs decline with output.
- production costs increase with output.
- production costs decline with output.
500
A natural monopoly is MOST likely to occur whenever
production costs decline with output
500
What is true about the market demand and the firm's demand in a monopoly?
They are the same
500
Describe the demand curves for perfect competition versus monopolistic competition
Perfect competition - horizontal
Monopolistic competition - downward sloping
500
Name the 6 original monopoly pieces
Battleship, Boot, Cannon, Thimble, Top Hat, Iron
500
Which of the following statements is probably MOST accurate?
- Without the financial power of the big monopolies, technological innovation as we know it would likely die out.
- Smaller firms promote sufficient technology to meet our economic and social needs.
- In most cases, monopolies actually work to thwart technological advancement since it threatens their monopolistic position.
- Given the diversity of interests and needs, some combination of market structures is probably the most efficient means of promoting technology.
- Given the diversity of interests and needs, some combination of market structures is probably the most efficient means of promoting technology.