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Which of the following best approximates a pure monopoly

20/03/2021 Client: saad24vbs Deadline: 24 Hours

1. (TCO 3) Which of the following is most likely to be an implicit cost for Company X? (Points : 1)
Forgone rent from the building owned and used by Company X
Rental payments on IBM equipment
Payments for raw materials purchased from Company Y
Transportation costs paid to a nearby trucking firm

Question 2.2. (TCO 3) The short run is characterized by (Points : 1)
plenty of time for firms to either enter or leave the industry.
increasing, but not diminishing returns.
fixed plant capacity.
zero fixed costs.

Question 3.3. (TCO 3) An industry comprised of 40 firms, none of which has more than 3% of the total market for a differentiated product is an example of (Points : 1)
monopolistic competition.
oligopoly.
pure monopoly.
pure competition.

Question 4.4. (TCO 3) Which of the following statements applies to a purely competitive producer? (Points : 1)
It will not advertise its product.
In long-run equilibrium it will earn an economic profit.
Its product will have a brand name.
Its product is slightly different from those of its competitors.

Question 5.5. (TCO 3) Which of the following best approximates a pure monopoly? (Points : 1)
The foreign exchange market
The Kansas City wheat market
The only bank in a small town
The soft drink market

Question 6.6. (TCO 3) Barriers to entering an industry (Points : 1)
encourage allocative efficiency.
encourage productive efficiency.
are the basis for monopoly.
apply only to purely monopolistic industries.

Question 7.7. (TCO 3) The restaurant, legal assistance, and clothing industries are each illustrations of (Points : 1)
countervailing power.
homogeneous oligopoly.
monopolistic competition.
pure monopoly.

Question 8.8. (TCO 3) Product variety is likely to be greater in (Points : 1)
monopolistic competition than in pure competition.
pure competition than in monopolistic competition.
homogenous oligopoly than in monopolistic competition.
homogenous oligopoly than in differentiated oligopoly.

Question 9.9. (TCO 3) Which of the following is the best example of oligopoly? (Points : 1)
Women's dress manufacturing
Automobile manufacturing
Restaurants
Cotton farming

Question 10.10. (TCO 3) An industry having a four-firm concentration ratio of 85% (Points : 1)
approximates pure competition.
is monopolistically competitive.
is a pure monopoly.
is an oligopoly.

Question 11. 11. (TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon? (Points : 5)

Question 12. 12. (TCO 3) Identify the primary characteristics of perfect competition and monopolistic competition. Give examples of each. (Points : 5)

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