1. Barriers to entry associated with a monopoly might include

A. State or frderal license to operate

B. Ownership rights to a well known brand name with very loyal cuatomers

C. Managerial skills

D. Import quotas

E. Business taxes

2. An oligopoly

A. Is the only seller of a product

B. Is none of the above

C. Sells only a differentiated product

D. Is a market structure consisting of thousands of sellers

E. Must consider how competitors are pricing their products when deciding what price to change

3. The automobile industry would be deacribed by economists as

A. Monopoly

B. Monopolistically

C. Oligopoly competitive industry

D. Purely competitive industry

E. Horizontal merger

4. A monopoly as opposed to a competitive industry will

A. Produce more, charge a higher price and use more resources

B. Produce more, charge lower price and use more resources

C. Produce less, charge higher price and use fewer resources

D. Produce less, charge lower price, use more resources

E. Maximize consumer welfare

5. Which of the following is true of a pure monopoly

A. Its market power enables it to charge whatever price it wishes

B. It may have become the only seller of a product because it was the first to sell it

C. The consequences of a monopoly always limit consumer welfare

D. It is a price-taker

E. The barriers to entry are insurmountable

6. Which of the following is a price-taker

A. Monopolistically competitive firm

B. All of the above

C. Perfectly competitive firm

D. Oligopoly

E. Monopoly

7. Which of the following firm faces a perfectly elastic demand curve?

A. Monopolistically competitive firm

B. Oligopoly

C. Perfectly competitive firm

D. Monopoly

E. All of the above