Question 27 (1 point)

In which market structure will you find a price maker?

Question 27 options:

	perfect competition
	monopolistically competitive
	oligopoly
	monopoly

Question 28 (1 point)

Why does a monopoly arise?

Question 28 options:

	because of diseconomies of scale
	because entry to an industry is blocked
	because of elastic demand
	because firms want to maximize profits

Which of the following is a major difference between a monopolist and firms in perfectly competitive markets?

Question 29 options:

	The monopolist may earn short-run profit; firms in perfectly competitive markets CANNOT.
	The monopolist maximizes profit; firms in perfectly competitive markets maximize sales.
	The monopolist is a price taker; firms in other markets are price searchers.
	The monopolist may earn long-run economic profit; firms in perfectly competitive markets CANNOT.

Question 30(1 point)

If the average total cost curve is always above the demand curve of a monopolist, what can we conclude about the monopolist's performance?

Question 30 options:

	The monopolist will earn an economic profit.
	Entry will occur, forcing the monopolist to reduce price and expand output.
	The monopolist will suffer economic losses.
	The monopolist must be producing inefficiently.

Question 31(5 points)