Week 3 Knowledge Check

Topics: Economics, Monopoly, Oligopoly Pages: 7 (410 words) Published: December 4, 2014
Week 3 Knowledge Check Study Guide
Concepts

Mastery

Score: 7 / 7

Questions

MONOPOLY

100%

1

OLIGOPOLOY

100%

2

PROFIT MAXIMIZATION

100%

3

4

MARKET STRUCTURE

100%

5

6

7

Concept: MONOPOLY
Mastery

100%

Questions

1.
In a monopolistically competitive market,

A. firms produce differentiated products

1

B. there are barriers to entry
C. firms produce homogeneous products
D. the demand for any firm's product is perfectly elastic

Correct:
The Correct Answer is: A.

Concept: OLIGOPOLOY
Mastery

100%

Questions

2.
Strategic decision making is most important in

A. competitive markets
B. monopolistically competitive markets

2

C. oligopolistic markets
D. monopolistic markets

Correct:
The Correct Answer is: C.

Concept: PROFIT MAXIMIZATION
Mastery

100%

Questions

3

4

3.
The general monitoring problem implies that

A. profit maximization should always be considered to be a firm's goal

B. there is a cost of supervising employees so that they work toward the owner's goals rather than their own

C. government must intervene to protect national goals
D. competition will ensure common goals among the owners and managers of a firm

Correct:
The Correct Answer is: B.
4.
Lazy monopolists are characterized by the tendency to

A. maximize profits at the cost of losing market share
B. pay too much to protect their monopoly positions
C. earn enough profits to keep their shareholders happy without trying too hard to hold costs down

D. minimize losses so that the dividends of shareholders are maximized

Correct:
The Correct Answer is: C.

Concept: MARKET STRUCTURE
Mastery

100%

Questions

5

6

7

5.
Judgment by performance means that the competitiveness of a market is determined by

A. the actual behavior of firms in the market
B. the structure of the industry
C. . the number of firms in the market
D. technological considerations

Correct:
The Correct Answer is: A.
6.
Consumers tend to accept the market restrictions imposed by suppliers because

A.

governments prevent them from organizing

B. they see themselves as laborers and therefore benefit from restrictions

C. their costs of organizing are higher than the cost of collusion by the suppliers

D. when combined, their losses are small for the group as a
whole

Correct:
The Correct Answer is: C.

7.
The fact that U.S. managers' salaries are about four times higher than those of comparable managers in Japan, where banks control firms more closely, is probably

A. an example of the monitoring problem in the United States B.

an example of X-inefficiency in Japan

C. due to the fact that the U.S. economy is much less competitive D. due to the fact that there are more natural monopolies in the United States

Correct:
The Correct Answer is: A.

Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Week 3 Knowledge Check Essay
  • Week 3 Knowledge Check Study Guide Essay
  • Week 4 Knowledge Check Essay
  • Week 2 Knowledge Check Essay
  • Knowledge Week 1 Essay
  • Week 6 Individual Knowledge Check Essay
  • Weekly Reflection Week 3 Essay
  • BUS 475 Week 2 Knowledge Check Essay

Become a StudyMode Member

Sign Up - It's Free