Question

1)In the U.S. a drug company’s patent remains in force for:

Group of answer choices

a)10 years.

b)25 years.

c)70 years.

d)20 years.

2)When a natural monopoly exists in a given industry, the per-unit costs of production will be

Group of answer choices

a)lower for the smaller firms than for larger firms.

b)lowest when there are a large number of producers in the industry.

c)lowest when a single firm generates the entire output of the industry.

d)minimized at the output that maximizes the industry's profitability.

3)Which of the following scenarios does not represent characteristics of a monopoly?

Group of answer choices

a)Market conditions cause potential firms to face high barriers to entry.

b)An individual firm has very little market power.

c)A single firm produces all of the output in a given market.

d)A firm has the ability to set its own price.

4)In situations in which there are substantial economies of scale, the ___________ of adding an additional customer is very _________ once the fixed costs of the overall system are in place.

Group of answer choices

a)marginal revenue; low

b)marginal cost; high

c)average variable cost, high

d)marginal cost; low

Answer 1

1) d. 20 years

2) c)lowest when a single firm generates the entire output of the industry.

3) b)An individual firm has very little market power

4) d) marginal cost ; low