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Economics Test I

30 Questions  I  By Lynz143
Economics Test I
Microeconomics multiple choice quiz.

  
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1.  Which of the following is correct
A.
B.
C.
D.
2.  Barriers to entering an industry: 
A.
B.
C.
D.
3.  The nondiscriminating pure monopolist's demand curve
A.
B.
C.
D.
4.  A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the tenth unit of sales per week is: 
A.
B.
C.
D.
5.  The pure monopolist's demand curve is: 
A.
B.
C.
D.
6.  The marginal revenue curve for a monopolist: 
A.
B.
C.
D.
7.  When the pure monopolist's demand curve is elastic, marginal revenue: 
A.
B.
C.
D.
8.  If a pure monopolist is operating in a range of output where demand is elastic:
A.
B.
C.
D.
9.  A pure monopolist is selling 6 units at a price of $12. If the marginal revenue of the seventh unit is $5, then:
A.
B.
C.
D.
10.  The MR = MC rule:
A.
B.
C.
D.
11.  Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing:  Total                     Marginal      Average           MarginalOutput     Price      Revenue      Total Cost       Cost      1             100        100             100.00            302             90          80               63.00              263             80          60               52.67              324             70          40               49.50              405             60          20               49.60              506             50            0               50.00              527             40         -20               52.29              668             30         -40               55.75              809             20         -60               60.67              10010           10         -80               67.60              130
A.
B.
C.
D.
12.  Which of the following statements is incorrect
A.
B.
C.
D.
13.        Demand Data                            Cost DataPrice    Qty Demanded           Output       Total Output5.50              3                         3                  5.005.00              4                         4                  6.004.50              5                         5                  6.503.85              6                         6                  7.503.35              7                         7                  9.002.90              8                         8                  11.002.50              9                         9                  14.00Refer to the above data. The profit-maximizing price for the monopolist will be:   
A.
B.
C.
D.
14.  In the short run a pure monopolist's profit: 
A.
B.
C.
D.
15.  Monopolistic competition means:
A.
B.
C.
D.
16.  Which of the following is not characteristic of monopolistic competition? 
A.
B.
C.
D.
17.  A monopolistically competitive industry combines elements of both competition and monopoly. It is correct to say that the competitive element results from: 
A.
B.
C.
D.
18.  The price elasticity of a monopolistically competitive firm's demand curve varies: 
A.
B.
C.
D.
19.  In the short run a monopolistically competitive firm's economic profit: 
A.
B.
C.
D.
20.  Which of the following is not characteristic of long-run equilibrium under monopolistic competition? 
A.
B.
C.
D.
21.  In the long run, new firms will enter a monopolistically competitive industry: 
A.
B.
C.
D.
22.         Demand Data                    Cost Data(1)          (2)         (3)Price    Price      Qty         Output        Total Cost11.00   10.00        6             6                     61                           9.99      8.85        7              7                    629.00      8.00        8              8                    648.00      7.00        9              9                    677.10      6.10       10            10                   726.00      5.00       11            11                   795.15      4.15       12            12                   86 Refer to the above data. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, the profit-maximizing level of output will be: 
A.
B.
C.
D.
23.  An important similarity between a monopolistically competitive firm and a purely competitive firm is that:
A.
B.
C.
D.
24.  The economic inefficiencies of monopolistic competition may be offset by the fact that: 
A.
B.
C.
D.
25.  The mutual interdependence that characterizes oligopoly arises because: 
A.
B.
C.
D.
26.  Prices are likely to be least flexible: 
A.
B.
C.
D.
27.  An industry having a four-firm concentration ratio of 85 percent: 
A.
B.
C.
D.
28.  Suppose the Herfindahl Indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that: 
A.
B.
C.
D.
29.  Oligopolistic firms engage in collusion to: 
A.
B.
C.
D.
30.  A pure monopolist: 
A.
B.
C.
D.
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