Economia 001 Chapter 009 1 Rtf Imperfect Competition And Monopoly

Chapter 9Imperfect Competition and MonopolyMultiple Choice Questions1. Imperfect competition prevails in an industry when what condition exists: A) individual sellers cannot affect price. B) individual sellers can affect price. C) price is set by the consumer.D) price is set by the government. E) none of the above are correct.Answer: BDifficulty: Easy Topic: Definition Blooms: KnowledgeAACSB: Reflective Thinking2. A perfect competitor's output in the short run is the quantity that: A) sets MC equal to MR = P. B) sets AVC = P. C) minimizes ATC. D) sets ATC = P. E) none of the above are correct.Answer: ADifficulty: Easy Topic: Simple Application Blooms: ComprehensionAACSB: Reflective Thinking3. If a firm's demand curve is horizontal, then the firm's marginal revenue is: A) less than the price of the product. B) equal to the price of the product. C) greater than the price of the product. D) greater than, equal to, or less than the price of the product, depending on the particular circumstances. E) not determinable from the above information. Answer: BDifficulty: Easy Topic: Simple Application Blooms: ComprehensionAACSB: Reflective Thinking4. If you are the only mechanic in town which of the following is true about your demand curve? A) You dont have