1 Which characteristic is most important to running a successful monopoly?
a The only buyer of a resource or type of labor
b The only seller of a non-essential product
c The only buyer of a consumer product
d The only seller of a difficult-to-substitute product
2 Which of the following is most likely to be observed in a monopolistically competitive market?
a Standardized, homogenous products
b Non-price competition, such as advertising
c Collusion and price-fixing between firms
d Government antitrust oversight
3.Which of the following would most likely be a monopoly?
a An electricity provider
b An appliance store
c A dentist's office
d A supermarket
4 . Firm X and Firm Y were previously in direct competition, but now they plan to merge. This combination would be considered a
a complementary merger
b a merger of equals
c vertical merger
d horizontal merger
5 The demand curve for the perfectly elastic competitor is:
a perfectly inelastic
b relative, but not perfectly elastic
c downward sloping
d perfectly elastic
