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Monopoly prices Flashcards | StudBud
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Monopoly prices
Monopoly prices
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Flashcards
23 cards
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Practice quiz
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Questions
23
Answers
1
Competition exists when there is free access to entrepreneurship?
False
True
2
It is possible to compare the perfect competition price with the monopoly price (reduced supply and increasing price)
True
False
3
The legal-institutional definition of monopoly is monopoly as a privilege
True
False
4
There are only market prices and non-market prices
False
True
5
When a company is divided and prices equal marginal revenue, consumers may pay higher prices than before
False
True
6
When between goods A and B exists the connexity of substitution and the demand for good A decreases , the price of B
decreases
increases
affects the demand of B
remains the same
7
Situations where resale is impossible are close to the case of an isolated exchange
True
False
8
In the market the relationship par excellence is that of complementarity
True
False
9
Definition of monopoly: A company "controls" its price. This definition is helpful
False
True
10
Neoclassical economists propose to divide companies in order to get to
cost=average revenue
p=marginal revenue
p > marginal costs
cost = marginal revenue
11
"monopoly price" exists when the price exceeds the "competitive price"the monopolist decreased supply to increase profit
True
False
12
What is not a problem of the definition of monopoly as a single seller of a good?
it is caused by state privileges
it is impossible to objectively define the market
it is irrelevant if there is a single seller from a dynamic point of view
when we expand the definition of the sector, monopoly never exists
13
Good A and good B are complementary. When the demand for good A increases, the price of good B tends to
decrease
stay the same
increase
be unaffected
14
cutthroat competition consists in
leveling down product standards
to get privileges from the government and exclude your competitors
to sabotage your competitors
lowering price below costs to drive out competitors and increase prices
15
on the free market there is no way to distinguish the competitive price from the monopolist price
False
True
16
When the company is divided, the cost curve
shifts downward
ajusts to marginal revenue
shifts upward
stays the same
17
For price discrimination to work there must be
Recycling must be imposible
seller cannot believe he will benefit
Resale must be imposible
racism prevails in society
18
What is the problem with the definition of "monopolist price"
We know when there is a monopolist price
the competitive price is the one that emerges in the market
monopolist prices are too high
we can compare the competitive price with the monopolist price
19
There is only one market prices that results from voluntary exchanges
False
True
20
Price discrimination on part of sellers can only occur only with services
False
True
21
What is price discrimination on part of the seller?
seller pays different prices to factors of production of same quality
seller asks different prices according to purchasing power of buyers
seller asks different prices according to sex or rax
seller discriminates against women or other races
22
Neoclassical economists see it as problematic when
p=marginal revenue
p>marginal revenue
price=marginal cost
marginal revenue<p
23
cutthroat competition (mark wrong)
benefits monopolists
is defined through unobservable intentions
benefits consumers
is not a viable strategy
