W04 Assessment: Lessons 4.1-4.4
Due
Points 50
Questions 23
Available until
Time Limit None
Instructions
Task: Study the materials and take the quiz.
Purpose: To assess your understanding of key concepts and principles of economics.
Conditions
1. Review this week's material, which covers Lesson 4.1-4.4.
2. Complete this quiz.
This is an individual exercise. You may not use other resources such as friends, Google, or a
generative AI.
Attempt History
Attempt Time Score
LATEST Attempt 1 minutes 50 out of 50
Correct answers are hidden.
Score for this quiz: 50 out of 50
Submitted
This attempt took minutes.
Question 1
pts
An industry that contains a firm that is the only producer of a good or service for which there are no
close substitutes and for which entry by potential rivals is prohibitively difficult is .
a duopoly
a monopoly
an oligopoly
perfect competition
Question 2
pts
What is a common barrier to entry in the airline industry?
, Low startup costs
High demand
Large sunk costs
No government regulations
Question 3
pts
How does the marginal revenue curve differ from the demand curve for a monopolist?
Marginal revenue and the demand curve are the same
Marginal revenue increases at a faster rate than the demand curve
Marginal revenue decreases at a faster rate than the demand curve
Marginal revenue is not related to the demand curve
Question 4
pts
What is the relationship between price and quantity in a monopoly market?
Price and quantity have a negative relationship
Price and quantity are equal
Price and quantity have a positive relationship
Price and quantity are independent of each other
Question 5
pts
At 100 units of production, a monopoly business has the following revenue and costs: marginal
revenue = $50, marginal costs = $50, average total cost = $80, average variable costs = $40. If the
price the product is sold at is $70, the business is __________________.
maximizing profit with a profit of $10 per unit or $1,000 total
minimizing loss with a loss of $10 per unit or $1,000 total
maximizing profit with a profit of $50 per unit or $5,000 total
minimizing loss with a loss of $50 per unit or $5,000 total
Question 6
pts
If a monopolist is producing a quantity that generates marginal cost equal to price, then profit
. (Hint: Remember that price is located on the demand curve.)
is maximized
is maximized only if marginal revenue equals price
can be increased by increasing production
can be increased by decreasing production
, Question 7
pts
What impact do barriers to entry have on competition in a monopoly market?
They have no effect on competition
They lead to government intervention
They encourage competition and lower prices
They limit competition and allow for sustained economic profits
Question 8
pts
What happens to economic profits in a monopoly market when barriers to entry are present?
Economic profits can be sustained without competition
Economic profits are shared among all market participants
Economic profits decrease due to increased competition
Economic profits are eliminated by government intervention
Question 9
pts
In the short run, a monopolist will stop producing if .
price < average total cost
price < average variable cost
price > marginal revenue
price > average total cost
Question 10
pts
What happens to the loss area if the price rises above the average variable costs?
The loss area remains the same
The loss area becomes profit
The loss area decreases
The loss area increases
Question 11
pts
In monopolistic competition, what role do barriers to entry play?
They are non-existent
They are set by the government
They are extremely high
They may exist but are typically not high
Due
Points 50
Questions 23
Available until
Time Limit None
Instructions
Task: Study the materials and take the quiz.
Purpose: To assess your understanding of key concepts and principles of economics.
Conditions
1. Review this week's material, which covers Lesson 4.1-4.4.
2. Complete this quiz.
This is an individual exercise. You may not use other resources such as friends, Google, or a
generative AI.
Attempt History
Attempt Time Score
LATEST Attempt 1 minutes 50 out of 50
Correct answers are hidden.
Score for this quiz: 50 out of 50
Submitted
This attempt took minutes.
Question 1
pts
An industry that contains a firm that is the only producer of a good or service for which there are no
close substitutes and for which entry by potential rivals is prohibitively difficult is .
a duopoly
a monopoly
an oligopoly
perfect competition
Question 2
pts
What is a common barrier to entry in the airline industry?
, Low startup costs
High demand
Large sunk costs
No government regulations
Question 3
pts
How does the marginal revenue curve differ from the demand curve for a monopolist?
Marginal revenue and the demand curve are the same
Marginal revenue increases at a faster rate than the demand curve
Marginal revenue decreases at a faster rate than the demand curve
Marginal revenue is not related to the demand curve
Question 4
pts
What is the relationship between price and quantity in a monopoly market?
Price and quantity have a negative relationship
Price and quantity are equal
Price and quantity have a positive relationship
Price and quantity are independent of each other
Question 5
pts
At 100 units of production, a monopoly business has the following revenue and costs: marginal
revenue = $50, marginal costs = $50, average total cost = $80, average variable costs = $40. If the
price the product is sold at is $70, the business is __________________.
maximizing profit with a profit of $10 per unit or $1,000 total
minimizing loss with a loss of $10 per unit or $1,000 total
maximizing profit with a profit of $50 per unit or $5,000 total
minimizing loss with a loss of $50 per unit or $5,000 total
Question 6
pts
If a monopolist is producing a quantity that generates marginal cost equal to price, then profit
. (Hint: Remember that price is located on the demand curve.)
is maximized
is maximized only if marginal revenue equals price
can be increased by increasing production
can be increased by decreasing production
, Question 7
pts
What impact do barriers to entry have on competition in a monopoly market?
They have no effect on competition
They lead to government intervention
They encourage competition and lower prices
They limit competition and allow for sustained economic profits
Question 8
pts
What happens to economic profits in a monopoly market when barriers to entry are present?
Economic profits can be sustained without competition
Economic profits are shared among all market participants
Economic profits decrease due to increased competition
Economic profits are eliminated by government intervention
Question 9
pts
In the short run, a monopolist will stop producing if .
price < average total cost
price < average variable cost
price > marginal revenue
price > average total cost
Question 10
pts
What happens to the loss area if the price rises above the average variable costs?
The loss area remains the same
The loss area becomes profit
The loss area decreases
The loss area increases
Question 11
pts
In monopolistic competition, what role do barriers to entry play?
They are non-existent
They are set by the government
They are extremely high
They may exist but are typically not high
