APUS ECON201: Final Exam – 98%
Overall Grade (highest attempt): 157.5 / 160 - 98.44 %
Question 1 5/5
One defining characteristic of pure monopoly is that: The monopolist is a price taker
The monopolist uses advertising
There is relatively easy entry into the industry, but exit is d...
One defining characteristic of pure monopoly is that:
The monopolist is a price taker
The monopolist uses advertising
The monopolist produces a product with no close substitutes
There is relatively easy entry into the industry, but exit is difficult
Question 2 5/5
Which is a barrier to entry?
Close substitutes
Diseconomies of scale
Government licensing
Price-taking behavior
Question 3 5/5
Other things equal, which reduces competition in an industry?
Patent laws
Freedom of entry for new firms
An increase in the number of producers
An increase in the number of buyers
Question 4 5/5
The representative firm in a purely competitive industry:
Will always earn a profit in the short run
, May earn either an economic profit or a loss in the long run
Will always earn an economic profit in the long run
Will earn an economic profit of zero in the long run
Question 5 5/5
An example of a monopolistically competitive industry would be:
Steel
Soybeans
Electricity
Retail clothing
Question 6 5/5
Firms in an industry will not earn long-run economic profits if:
Fixed costs are zero
The number of firms in the industry is fixed
There is free entry and exit of firms in the industry
Production costs for a given level of output are minimized
Question 7 5/5
Marginal product is:
the increase in total output attributable to the employment of one more worker.
the increase in total revenue attributable to the employment of one more worker.
the increase in total cost attributable to the employment of one more worker.
total product divided by the number of workers employed.
Question 8 5/5
The law of diminishing returns indicates that:
as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
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