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