Economics MCQs

A. Marginal revenue equals average total cost
B. Price equals marginal revenue
C. Marginal revenue equals marginal cost
D. Total revenue equals total cost

A. Underproduction of the good
B. The monopoly’s profits
C. The monopoly’s losses
D. Overproduction of the good

A. Does not exist
B. Is the marginal cost curve above average variable cost?
C. Is the marginal cost curve above average total cost
D. Is the upward-sloping portion of the average total cost curve

A. Increase competition in an industry by preventing mergers and breaking up large firms.
B. Regulate the prices charged by a monopoly
C. Increase merger activity to help generate synergies that reduce costs and raise efficiency.
D. Create public ownership of natural monopolies

A. Perfect price discrimination generates a deadweight loss
B. Price discrimination can raise economic welfare.
C. Price discrimination requires that seller be able to separate buyers according to their willingness to pay.
D. Price discrimination increases a monopolist’s profits.

A. There is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. The monopolist is financially powerful.
D. Antitrust laws eliminate competitors for a specified number of years.

A. One seller of the product
B. Low barriers to entry
C. Close substitute products
D. Perfect information

A. Patents
B. Internal economies of scale
C. Mobility of resources
D. High investment costs

A. There are many buyers and sellers
B. There is one main buyer
C. There is one main seller
D. The actions of one firm do not affect the market price and quantity

A. The price is greater than the marginal cost
B. The price is greater than the marginal benefit
C. The price is greater than the average revenue
D. The price is greater than the marginal revenue