Page 1 of 153
Econ 1010 Final EXAM WITH 400 QUESTIONS AND
CORRECT DETAILED SOLUTIONS LATEST UPDATED
VERSION JUST RELEASED
Question: 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
Question: 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:
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A. -$11.
B. -$10.
C. $21.
D. $189 - ANSWER✔✔A
Question: 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
Question: 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
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Question: 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
Question: 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
Question: Economists use the term "imperfect competition" to describe:
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A. all industries which produce standardized products.
B. any industry in which there is no nonprice competition.
C. a monopoly only.
D. those markets which are not perfectly competitive - ANSWER✔✔D
Question: The markets for wheat or corn would best be described as:
A. monopolistic competition.
B. perfect competition.
C. monopoly.
D. oligopoly - ANSWER✔✔B
Question: . Which of the following explains why there is no advertising by individual firms
under perfect
competition?
A. Firms produce a homogeneous product.
B. The quantity of the product demanded is very large.
Econ 1010 Final EXAM WITH 400 QUESTIONS AND
CORRECT DETAILED SOLUTIONS LATEST UPDATED
VERSION JUST RELEASED
Question: 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
Question: 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:
, Page 2 of 153
A. -$11.
B. -$10.
C. $21.
D. $189 - ANSWER✔✔A
Question: 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
Question: 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
, Page 3 of 153
Question: 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
Question: 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
Question: Economists use the term "imperfect competition" to describe:
, Page 4 of 153
A. all industries which produce standardized products.
B. any industry in which there is no nonprice competition.
C. a monopoly only.
D. those markets which are not perfectly competitive - ANSWER✔✔D
Question: The markets for wheat or corn would best be described as:
A. monopolistic competition.
B. perfect competition.
C. monopoly.
D. oligopoly - ANSWER✔✔B
Question: . Which of the following explains why there is no advertising by individual firms
under perfect
competition?
A. Firms produce a homogeneous product.
B. The quantity of the product demanded is very large.
