ECON 1010 INTRODUCTION TO
MICROECONOMICS TEST BANK ACTUAL
EXAM 2026 QUESTIONS WITH DETAILED
ANSWERS GRADED A+
⩥ Which is a barrier to entry?
A. patents
B. revenue maximization
C. profit maximization
D. elastic product demand. Answer: A
⩥ One of the major barriers to entry under monopoly arises from:
A. the availability of close substitutes for a product.
B. ownership of essential resources.
C. the price taking ability of the firm.
D. diseconomies of scale. Answer: B
⩥ A monopolistic industry:
A. has no entry barriers.
B. has a downward sloping demand curve.
C. produces a product or service for which there are many close
substitutes.
,D. earns only a normal profit in the long run. Answer: B
⩥ The demand curve faced by a monopolist:
A. may be either more or less elastic than that faced by a single perfect
competitive firm.
B. is less elastic than that faced by a single perfectly competitive firm.
C. has the same elasticity as that faced by a single perfectly competitive
firm.
D. is more elastic than that faced by a single perfectly competitive firm.
Answer: B
⩥ If a non-discriminating imperfectly competitive firm is selling its
100th unit of output for $35,
its marginal revenue:
A. may be either greater or less than $35.
B. will also be $35.
C. will be less than $35.
D. will be greater than $3. Answer: C
⩥ A monopolistic firm has a sales schedule such that it can sell 10
prefabricated garages per
week at $10,000 each, but if it restricts its output to 9 per week it can
sell these at $11,000 each.
The marginal revenue of the tenth unit of sales per week is:
,A. $900.
B. $9,000.
C. $10,000.
D. $1,000. Answer: D
⩥ A monopolist can sell 20 units of a product per day at a unit price of
$10. To sell another unit
it must reduce price to $9. The marginal revenue of the 21st unit is:
A. -$11.
B. -$10.
C. $21.
D. $189. Answer: A
⩥ Perfectly competitive firms and monopolists are similar in that:
A. the demand curves of both are perfectly elastic.
B. significant entry barriers are common to both.
C. both are price makers.
D. both maximize profit where MR = MC. Answer: D
⩥ When a monopolist is producing its profit - maximizing output, price
will:
A. be less than MR.
, B. equal neither MC nor MR.
C. equal MR.
D. equal MC. Answer: B
⩥ In which of the following industry structures is the entry of new firms
the most D?
A. monopoly
B. oligopoly
C. monopolistic competition
D. perfect competition. Answer: A
⩥ An industry comprised of a small number of firms, each of which
considers the potential
reactions of its rivals in making price-output decisions is called:
A. monopolistic competition
B. oligopoly.
C. monopoly.
D. perfect competition. Answer: B
⩥ Economists use the term "imperfect competition" to describe:
A. all industries which produce standardized products.
B. any industry in which there is no nonprice competition.
MICROECONOMICS TEST BANK ACTUAL
EXAM 2026 QUESTIONS WITH DETAILED
ANSWERS GRADED A+
⩥ Which is a barrier to entry?
A. patents
B. revenue maximization
C. profit maximization
D. elastic product demand. Answer: A
⩥ One of the major barriers to entry under monopoly arises from:
A. the availability of close substitutes for a product.
B. ownership of essential resources.
C. the price taking ability of the firm.
D. diseconomies of scale. Answer: B
⩥ A monopolistic industry:
A. has no entry barriers.
B. has a downward sloping demand curve.
C. produces a product or service for which there are many close
substitutes.
,D. earns only a normal profit in the long run. Answer: B
⩥ The demand curve faced by a monopolist:
A. may be either more or less elastic than that faced by a single perfect
competitive firm.
B. is less elastic than that faced by a single perfectly competitive firm.
C. has the same elasticity as that faced by a single perfectly competitive
firm.
D. is more elastic than that faced by a single perfectly competitive firm.
Answer: B
⩥ If a non-discriminating imperfectly competitive firm is selling its
100th unit of output for $35,
its marginal revenue:
A. may be either greater or less than $35.
B. will also be $35.
C. will be less than $35.
D. will be greater than $3. Answer: C
⩥ A monopolistic firm has a sales schedule such that it can sell 10
prefabricated garages per
week at $10,000 each, but if it restricts its output to 9 per week it can
sell these at $11,000 each.
The marginal revenue of the tenth unit of sales per week is:
,A. $900.
B. $9,000.
C. $10,000.
D. $1,000. Answer: D
⩥ A monopolist can sell 20 units of a product per day at a unit price of
$10. To sell another unit
it must reduce price to $9. The marginal revenue of the 21st unit is:
A. -$11.
B. -$10.
C. $21.
D. $189. Answer: A
⩥ Perfectly competitive firms and monopolists are similar in that:
A. the demand curves of both are perfectly elastic.
B. significant entry barriers are common to both.
C. both are price makers.
D. both maximize profit where MR = MC. Answer: D
⩥ When a monopolist is producing its profit - maximizing output, price
will:
A. be less than MR.
, B. equal neither MC nor MR.
C. equal MR.
D. equal MC. Answer: B
⩥ In which of the following industry structures is the entry of new firms
the most D?
A. monopoly
B. oligopoly
C. monopolistic competition
D. perfect competition. Answer: A
⩥ An industry comprised of a small number of firms, each of which
considers the potential
reactions of its rivals in making price-output decisions is called:
A. monopolistic competition
B. oligopoly.
C. monopoly.
D. perfect competition. Answer: B
⩥ Economists use the term "imperfect competition" to describe:
A. all industries which produce standardized products.
B. any industry in which there is no nonprice competition.
