When a firm is the only producer of a given product or is the only one offering a given service in the market it has a lot of power over the pricing and this is called a monopoly market. What do you know about this type of market, its level of demand and supply and characteristics? Take up the ultimate microeconomics quiz on monopoly and see how much you know about it.
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The government gives a single firm the exclusive right to produce some good
The cost of production make a single producer more efficient than a large number of producers
A key resource is owned by a single firm
A single firm is very large
Perfect competitor
Natural monopoly
Government monopoly
Regulated monopoly
Marginal revenue equals marginal cost
Marginal revenue equals price
Marginal cost equals price
Marginal cost equals demand
None of the above occurs
In competitive markets, price equals marginal cost; in monopolized markets, price equals marginal cost
In competitive markets, price exceeds marginal cost; in monopolized markets, price exceeds marginal cost
In competitive markets, price equals marginal cost; in monopolized markets, price exceeds marginal cost
In competitive markets, price exceeds marginal cost; in monopolized markets, price equals marginal cost
South-Western owns a key resource in the production of textbooks
South-Western is a natural monopoly
The government has granted South-Western exclusive rights to produce this textbook
South-Western is a very large company
The monopoly's profits
The monopoly's losses
Overproduction of the good
Underproduction of the good
Higher prices and higher output
Higher prices and lower output
Lower prices and lower output
Lower prices and higher output
Is the marginal-cost curve above average variable cost
Is the marginal-cost curve above average total cost
Is the upward-sloping portion of the average-total cost curve
Is the upward-sloping portion of the average variable cost
Does not exist
Improve efficiency
Raise the price of the good
Attract additional firms to enter the market
Cause the monopolist to exit the market
Regulate the prices charged by a monopoly
Increase competition in an industry by preventing mergers and breaking up large firms
Increase merger activity to help generate synergies that reduce costs and raise efficiency
Create public ownership of natural monopolies
Do all of the above