Question 1 (1 point)

A monopoly

Question 1 options:

a)

consists of a small number of firms.

b)

All of these are true.

c)

sells a good or service that has no close substitutes.

d)

has significant barriers that prevent existing firms from leaving the market.

Question 2 (1 point)

In monopolistic competition

Question 2 options:

a)

there are a large number of producers making similar products.

b)

All of these are true.

c)

there are no barriers preventing new firms from entering the market.

d)

each firm sells a good or service that no other firm can exactly replicate.

Question 3 (1 point)

In an oligopoly

Question 3 options:

a)

there is free entry into the market.

b)

All of these are true.

c)

there are a large number of firms.

d)

each firm sells goods that are either identical or differentiated.

Question 4 (1 point)

A natural monopoly is created

Question 4 options:

a)

when the consumption decision involves network effects, so new companies find it hard to attract customers.

b)

All of these are true.

c)

in industries with necessary legal restrictions on production.

d)

by economies of scale.

Question 5 (1 point)

Collusion occurs when firms

Question 5 options:

a)

work together to manipulate price or quantity.

b)

consider the decisions of other firms when making their own.

c)

each attempt to maximize their own profits.

d)

perform a legal merger to become a monopoly.

Question 6 (1 point)

Laws the promote competition and prohibit collusion are called

a)

antitrust regulations.

b)

monopoly blocking regulations.

c)

pro-consumer laws.

d)

oligopoly control laws.

Question 6 options: