Question

Question 30

Which of the following do firms in an oligopoly tend to operate more like?

	a.	They can operate like competitors or monopolies.
	b.	They operate more like perfect competitors.
	c.	They operate more like monopolies.
	d.	They operate more like competitors.

Question 22

Ella lives in Flint, Michigan where the city water was contaminated with harmful chemicals and lead. Ella’s infant now suffers from mental retardation due to lead poisoning. This is an example of a/an

	a.	external cost for Ella and her family because they bear some cost derived from the water distribution activity.
	b.	social cost for the water distribution company.
	c.	social cost for Ella and her family because they bear some cost derived from the water distribution activity.
	d.	private cost for the water distribution company.

Question 21

What would happen if the following scenario takes place in the future? Congress decides to change the patent protection time from 20 years to 7 years. Private research and development would most likely

	a.	remain at its normal levels as the time reduction would have no bearing on innovation.
	b.	increase because they would be racing faster to market to innovate and acquire profit.
	c.	decline because innovations would be bring in less profit in that shortened patent time frame.​
	d.	Focus on more long term research and development

Question 20

In the context of a monopolistic competitive market, which of these actions if taken would lead to creating the best product differentiation?

	a.	Placing the product in the same market location.
	b.	Creating a unique concept to a good or service.
	c.	Lowering the cost of production
	d.	Acquiring similar physical attributes as a competing product.

Question 31

When negative externalities are present in a market (assuming no government intervention), then

	a.	the equilibrium in the market will be inefficient because the supply curve is based on private cost only and does not include external costs.
	b.	the equilibrium in the market will be inefficient because the demand curve is lower than optimal because of external costs.
	c.	the equilibrium in the market will be inefficient because the supply curve is based on social cost but should be based on private costs only.
	d.	the equilibrium in the market will be efficient because the supply curve is based on private cost only and does not include external costs.

Question 32

Which of the following statements accurately describes a monopolistically competitive firm?

	a.	It competes against a large number of firms selling slightly different products.
	b.	Its market is dominated by a small number of firms.
	c.	It will try to blend in its product so it is indistinguishable from other firms’ products.
	d.	It is protected by high barriers to entry.

Question 33

What does it mean when a firm uses a trademark as a legal monopoly?

	a.	It means the product is protected against unfair trade practices
	b.	It is using an identifiable name or symbol.
	c.	It means the firm has a limited amount of time to the exclusive legal right to make, use, or sell the invention.
	d.	It means it has protection for the life of the author plus 70 years after the author’s death.

Question 34

When it is costly or impossible to exclude someone who hasn't paid to use a particular good from using it, then that good is ________.

	a.	an external good.
	b.	a free rider
	c.	nonrivalrous.
	d.	nonexcludable

Answer 1

Question 30

Ans: D

because here large number of small firms will operate thus they will see each others as competitiors

Question 22

Ans : A

this situation result in external cost for the family because the get a negative effect

QN 21

Ans : C

reduction in term of patent protection will reduce the loyalty to the innovator thus reducing the spirit of research

QN 34

Ans :D

EG: A fire work in a densely populated area

As HOMEWORKLIB RULES we are asked to answer only one question. I have helped you with answers for 4 qns.