AMU ECON 201 Week 6 Quiz
Week 6 Quiz (Chapter 9 & 10)
Attempt Score170 /170 - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1 points
Perfect competition is characterized by:
(O rivalry in advertising.
() fierce quality competition.
(®) the inability of any one firm to influence price.
() widely recognized brands.
Question 2 points
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:
(O aduopoly.
(®) a monopoly.
(") an oligopoly.
() perfect competition.
Question 3 points
Which of the following is true in a perfectly competitive market?
(®) One unit of a good or service cannot be differentiated from any other on any basis.
() Brand preferences exist but are very slight.
() Barriers to entry are relatively strong.
() Information is costly.
, Question 4 10/ 10 points.
The assumptions of perfect competition imply that:
@ individuals in the market accept the market price as given.
O individuals can influence the market price.
O the price will be a fair price.
O the price will be low.
Question 5 10/ 10 points.
Which of the following is true?
() Price and average revenue are never equal.
O Price and marginal revenue are seldom equal under conditions of perfect competition.
When a firm is operating under perfectly competitive market conditions, price and marginal cost will
always be equal if the firm is maximizing profits.
() Average revenue equals price times quantity.
Question 6 10/ 10 points
If a firm possesses monopoly power, it means that:
@ the firm can set its own price based on its output decision.
O the firm's demand curve is always elastic.
O the firm is necessarily a monopoly.
O Aand Care true.
Question 7 10/ 10 points
Marginal revenue:
O isthe slope of the average revenue curve.
@ equals the market price in perfect competition.
O isthe change in quantity divided by the change in total revenue.
) isthe price divided by the changes in quantity.
Question 8 10/ 10 points.
Anatural monopoly exists whenever a single firm:
O is owned and operated by the federal or local government.
O isinvestor owned but granted the exclusive right by the government to operate in a market.
@ confronts economies of scale over the entire range of production that is relevant to its market.
() has gained control over a strategic input of an important production process.
Week 6 Quiz (Chapter 9 & 10)
Attempt Score170 /170 - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1 points
Perfect competition is characterized by:
(O rivalry in advertising.
() fierce quality competition.
(®) the inability of any one firm to influence price.
() widely recognized brands.
Question 2 points
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:
(O aduopoly.
(®) a monopoly.
(") an oligopoly.
() perfect competition.
Question 3 points
Which of the following is true in a perfectly competitive market?
(®) One unit of a good or service cannot be differentiated from any other on any basis.
() Brand preferences exist but are very slight.
() Barriers to entry are relatively strong.
() Information is costly.
, Question 4 10/ 10 points.
The assumptions of perfect competition imply that:
@ individuals in the market accept the market price as given.
O individuals can influence the market price.
O the price will be a fair price.
O the price will be low.
Question 5 10/ 10 points.
Which of the following is true?
() Price and average revenue are never equal.
O Price and marginal revenue are seldom equal under conditions of perfect competition.
When a firm is operating under perfectly competitive market conditions, price and marginal cost will
always be equal if the firm is maximizing profits.
() Average revenue equals price times quantity.
Question 6 10/ 10 points
If a firm possesses monopoly power, it means that:
@ the firm can set its own price based on its output decision.
O the firm's demand curve is always elastic.
O the firm is necessarily a monopoly.
O Aand Care true.
Question 7 10/ 10 points
Marginal revenue:
O isthe slope of the average revenue curve.
@ equals the market price in perfect competition.
O isthe change in quantity divided by the change in total revenue.
) isthe price divided by the changes in quantity.
Question 8 10/ 10 points.
Anatural monopoly exists whenever a single firm:
O is owned and operated by the federal or local government.
O isinvestor owned but granted the exclusive right by the government to operate in a market.
@ confronts economies of scale over the entire range of production that is relevant to its market.
() has gained control over a strategic input of an important production process.
