In the UK the government ?

A. Bans monopolies
B. Fines all monopolies
C. Prevents firms acquiring more than 25% of the market
D. Has the right to investigate monopolies and will assess each one on its own merits

A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ?

A. Natural monopoly
B. Perfect competitor
C. Government monopoly
D. Regulated monopoly

A monopolist maximizes profit by producing the quantity at which ?

A. Marginal revenue equals marginal cost
B. Marginal revenue equals price
C. Marginal cost equals price
D. Marginal cost equals demand

This monopolist should produce ?

A. 1
B. 2
C. 3
D. 4

Which of the following is necessary for a natural monopoly ?

A. Economies of scale
B. A high proportion of the total cost in the cost of capital goods
C. The market is very small
D. All of the above

In order to practice price discrimination which of the following is needed ?

A. Some degree of monopoly power
B. An ability to separate the market
C. An ability to prevent reselling
D. All of the above

In price discrimination, which section of the market is charged the higher price ?

A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand

The marginal revenue curve in monopoly ?

A. Equals the demand curve
B. Is parallel with the demand curve
C. Lies below and converges with the demand curve
D. Lies below and diverges from the demand curve

In monopoly in long run equilibrium ?

A. The firm is productively efficient
B. The firm is allocatively inefficient
C. The firm produces where marginal cost is less than marginal revenue
D. The firm produces at the socially optimal level

In a monopoly which of the following is not true ?

A. Products are differentiated
B. There is freedom of entry and exit into the industry in the long run
C. The firm is a price taker
D. There is one main sellers