ECO 405 Week 7 Quiz StrayerClick on the Link Below to Purchase ! "ra#e# Course $aterialhtt%&''hw(ala)co*'ECO+405+Week+7+Quiz+Strayer+4,7)ht*Quiz - Cha%ter . an# /0he Econo*ics O1 $ono%oly Power& Can $arkets Be Controlle#2 $ulti%le Choice Questions 1. Imperfect Competition Can Best Be Described As A Situation In Which A. A Few Large Firms Produce And Se A Particuar ProductB. !an" Firms Produce And Se A ProductC. #n" #ne Firm Produces And Ses A ProductD. Firms $%ercise Some !onopo" Power$. Both &A' And &D' (. )he !onopo" Power #f A Firm Can Be !easured B" )he Firm*s A. Profits +eati,e )o #ther Firms In )he Industr"B. Contro #,er )he Demand For Its ProductC. +e,enues As A Percent #f Industr" +e,enuesD. Prices Compared )o A,erage Prices In )he Industr"$. Contro #,er )he !ar-et Supp" #f Its Product .. Which #f )he Foowing Is Li-e" )o /a,e )he !ost !onopo" Power0 A. Ford !otor CorporationB. 1our Loca Water Compan"C. !obi #i CorporationD. A,on Products &Cosmetics'$. A Fast Food +estaurant 2. Concentration +atios Are 3sed )o !easure )he A. Potentia !onopo" Power Within An Industr"B. Strength #f )he Demand For An Industr"*s ProductC. Potentia !onopo" Power #f A FirmD. Degree #f Competition Between Firms In Different !ar-ets$. Le,e #f Perfection In A Competiti,e !ar-et 4. Suppose )he 3.S. Auto Industr" Ses 15666 Autos Per 1ear. #f )his5 7m Ses 2665Ford .665 And Dodge (46. 7i,en )his Information5 )he Four8Firm Concentration +atio #f )he Industr" !ust Be At Least A. 94:B. 4:C. 46:D. 166:$. Cannot )e Without Further Information ;uestions 6< 8 6= +efer )o )he )abe Beow.

C. 6.=D. 6.9$. 1.6 =. Assume )hat ?o Firm In )his Industr" Accounts For Less )han 4: #f Industr" Saes. What Is )he Largest ?umber #f Firms )hat Coud Be In )his Industr"0 A. C. =D. 9$. 16 9. Which #f )he Foowing Woud Cause An Industr"*s Concentration +atio )o !a-eIt Appear Less Competiti,e )han It +ea" Is0 A. Firms In )he Industr" Are Located In #ne Area #f )he Countr"B. )ransporting )he Industr"*s #utput Is @er" $as"C. Foreign Firms $%port )he Industr"*s Product )o )he 3nited StatesD. /igh Barriers )o $ntr"$. A #f )he Abo,e 16. A Pure !onopo" Industr" /as A 28Firm Concentration +atio $Aua )o A. 6B. 6.(4C. 646D. 6.9$. 1.6 11. )o !a%imiBe Profits5 A !onopoist Produces )he #utput Le,e At Which A. Its )ota +eceipts Are 7reatestB. Its )ota Costs Are !inimumC. Its !argina Cost $Auas Its !argina +e,enueD. Its )ota Costs $Aua Its )ota +eceipts$. ?one #f )he Abo,e 1(. )o !a%imiBe Profits5 A Competiti,e Firm Produces )he #utput Le,e At Which A. Its )ota +eceipts Are 7reatestB. Its )ota Costs Are !inimumC. Its !argina Cost $Auas Its !argina +e,enueD. Its )ota Costs $Aua Its )ota +eceipts$. ?one #f )he Abo,e 1.. #ne Difference Between A Competiti,e Seer And A !onopoistic Seer Is )hat )he A. Competiti,e Firm Faces A /oriBonta Supp" Cur,eB. !onopoist )ries )o !a%imiBe ProfitC. !onopoist /as Some Price Setting Abiit"D. Competiti,e Firm Is Free )o @ar" #utput$. !ar-et Demand Cur,e Is Positi,e" Soped For A !onopo" 12. !onopo" +efers )o A. A Large FirmB. A Firm )hat Is #ne #f A Few Firms In An Industr"C. A Singe Seer #f A Product For Which )here Are ?o 7ood SubstitutesD. A Firm )hat +efuses )o Lower Its Price$. A #f )he Abo,e 14. In A Competiti,e !ar-et5 )he Singe Firm A. Competes With #ther Firms For Its Share #f )he !ar-etB. Is 3nabe )o +aise )he Price #f )he ProductC. Can Increase Its Saes B" Ad,ertisingD. Can Increase Its Saes B" Lowering Its Price$. Is A #f )he Abo,e 1C. E(6D. E166$. E146 . And 146D. E> And !ore )han 146$. ?one #f )he Abo,e .=. )he Firm*s )ota +e,enue Is A. E4B. E>C. E166D. E146$. E466 .9. If )he Firm /as A )ota Cost #f E2665 It Is $arning A A. Profit #f E6B. Profit #f E166C. Loss #f E166D. Loss #f E(66$. Loss #f E466 ;uestions 26 8 22 +efer )o )he 7raph Beow5 Showing A !onopo" !ar-et. 26. For )he Firm Shown #n )he 7raph5 Profit !a%imiBation #ccurs At What Price And ;uantit"0 A. E(6 And 46B. E14 And >6C. E14 And 46D. E16 And 46$. E16 And >6 21. At )he Profit !a%imiBing ;uantit"5 )he Firm*s )ota +e,enue $Auas A. E16B. E14C. E(6D. E15666$. E15266 2(. If )he Firm /as )ota Costs #f E15(66 At )he Profit !a%imiBing #utput5 )hen It Is $arning A A. Profit #f E6B. Profit #f E166C. Profit #f E(66D. Loss #f E166$. Loss #f E(66 2.. If )his Were A Perfect" Competiti,e !ar-et5 $Auiibrium Price And ;uantit" Woud Be A. E(6 And 46B. E14 And >6C. E14 And 46D. E16 And 46$. E16 And >6 22. !onopoiBation #f )his !ar-et Leads )o A Deadweight Loss $Aua )o A. E6B. E46C. E166D. E146$. Cannot Be Determined 24. If A Firm Ses 166 3nits #f #utput At A Price #f E4 And $ach 3nit Costs E. )o Produce5 )he Firm Is $arning A A. Profit #f E(66B. Loss #f E( Per 3nitC. Loss #f E(66D. Profit #f E466$. Loss #f E.66 2. If A Firm Ses 166 3nits #f #utput At A Price #f E4 And $ach 3nit Costs E. )o Produce5 )he Firm*s )ota +e,enue $Auas A. E.B. E4C. E(66D. E.66$. E466 2=. A Perfect" Competiti,e Firm*s Supp" Cur,e Is Its A. Demand Cur,eB. !argina +e,enue Cur,eC. )ota +e,enue Cur,eD. !argina Cost Cur,e$. )ota Cost Cur,e 29. )he Supp" Cur,e For A !onopo" A. Is Its !argina +e,enue Cur,eB. Is Its )ota +e,enue Cur,eC. Is Its !argina Cost Cur,eD. Is Its )ota Cost Cur,e$. Does ?ot $%ist 46. )he Demand Cur,e For A A. !onopo" Firm Is Downward SopingB. !onopo" Industr" Is Downward SopingC. Perfect" Competiti,e Firm Is /oriBontaD. Perfect" Competiti,e Industr" Is Downward Soping$. A #f )he Abo,e 41. If A Firm Ses 166 3nits At A Price #f E4 And $ach 3nit Costs E. )o Produce5 Its )ota Cost $Auas A. E.B. E4C. E(66D. E.66$. E466 ;uestions 4( 8 4< +efer )o )he 7raph Beow. 4(. If )his Industr" Is Perfect" Competiti,e5 $Auiibrium Price And #utput In )he !ar-et Wi Be A. E1< And 16B. E1( And 16C. E1( And 12D. E= And 12$. E= And 16 4.. If )his Industr" Is A !onopo"5 $Auiibrium Price And #utput In )he !ar-et WiBe A. E1< And 16B. E1( And 16C. E1( And 12D. E= And 12$. E= And 16 42. If )his Industr" Starts As Perfect" Competiti,e And )hen Becomes A !onopo"5 !ar-et Price Wi Change From A. E1< )o E1(B. E1< )o E=C. E1( )o E=D. E= )o E1(. At What Le,e&S' #f #utput Do +eductions In )he A,erage Costs #f Production Cease0 A. 6B. 6 8 ;6C. ;6D. Abo,e ;6$. )here Are ?o +eductions In )he A,erage Costs #f Production >.. It Is Cheaper Per 3nit )o Produce /igher ;uantities When #utput Is A. /ighB. Between 6 And ;6C. ;6D. Abo,e ;6$. Decreasing >2. Which #f )he Foowing Is A ?egati,e ConseAuence #f Aowing Competition InAn Industr" )hat Is A ?atura !onopo"0 A. Deadweight Wefare LossB. Lower PricesC. +estricted #utputD. /igher A,erage Costs$. A #f )he Abo,e >4. Which #f )he Foowing Is A ?egati,e ConseAuence #f Aowing An 3nreguated ?atura !onopo"0 A. Deadweight Wefare LossB. /igher PricesC. +estricted #utputD. A #f )he Abo,e$. ?one #f )he Abo,e >>. Appro%imate" What Percent #f Saes In )he 3nited States Are !ade B" Corporations0 A. 26B. 46C. 6$. 96 >=. )he HAgenc" ProbemH Is Caused B" A. Corporate !anagers Pursuing 7oas Different From Stoc-hoder*s 7oasB. Stoc-hoders Attempting )o !icromanage CorporationsC. +eguator" Agencies Interfering With Corporate #perationsD. Sudden Decines In Stoc- Prices$. #,er8In,estment In ?ew Capita >9. A 7uarantee )hat Aows )he Purchase #f Shares #f Stoc- At A Fi%ed Price Is A&?' A. ?on8Pecuniar" Benefit #f $mpo"mentB. Stoc- #ptionC. Disincenti,e )o $%pand A CorporationD. Iega !eans )o Compensate Ceos$. Stoc- Spit =6. Some Woud Argue )hat #ne #f )he Primar" Benefits #f Possessing A !onopo" Is A. )he Chance )o $rect $ntr" BarriersB. )he #pportunit" )o Li,e )he ;uiet LifeC. )he Abiit" )o +estrict #utputD. )he Chance )o Create Deadweight Losses$. )he Abiit" )o Gac- 3p Prices )o Consumers=1. )here Is )he Possibiit" )hat )he Sheer SiBe #f Some FirmsI)heir JBignessKIIs A Probem For An $conom" BecauseA. Big Firms Possess Larger $ntr" BarriersB. Bigness Impies )hat )he Peope Who +un Such Firms Are 3nethicaC. Bigger Firms Are !ore InefficientD. )he $ffects )hat )he Faiure #f Large Firms Can /a,e #n )he 3s $conom"$. )he ?umber #f Shares #f Stoc- )hat Are )raded In Large Firms=(. )he 3s 7o,ernment In (66= Did ?ot Step Into )he !ar-et )o Bai #ut Which Firm0 A. Chr"serB. 7enera !otorsC. FordD. Aig$. )he 7o,ernment Stepped In )o Bai #ut A #f )hese Firms 0rue ' 3alse Questions =.. Firms With !onopo" Power 1ied /igher )han A,erage +eturns )o In,estors. =2. )he !onopo" Power #f A Firm In An Imperfect" Competiti,e !ar-et Is 7reater)he Larger )he Firm*s #utput +eati,e )o )he Industr" #utput. =4. )he !ore Seers )here Are In5 )he Less Contro An" #ne Seer /as #,er )he Price It Can Charge. =