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Think about cost structures associated with each of the following and decide which is

 Think about cost structures associated with each of the following and decide which is
                            most likely not to be a natural monopoly.

a.personal computer company

b.electric company

c.cable television company

d.water company

e.local telephone company

112.              Historical note: Because of its military importance, the U.S. government exercised
                            monopoly control over which one of the following goods before World War II?

a.iron

b.steel

c.helium

d.hydrogen

e.coal

113.              A monopoly whose monopoly power is based on its exclusive access to a resource is
                            always threatened by the possibility of

a.technological change

b.patents

c.economies of scale in production

d.new firms entering the industry

e.its position as a natural monopoly

114.              Legally, a patent grants a firm an exclusive right to its innovation for a period of

a.1 year

b.5 years

c.10 years

d.14 years

e.17 years

 

115.              Historical note: Andrew Carnegie became an industrial mogul by consuming or buying
                            out his competition in the _________ industry.

a.oil

b.steel

c.rubber

d.lumber

e.land

116.              The lack of success among monopolistic competitive and oligopolistic firms to become
                            monopolies can be attributed primarily to

a.lack of business skills

b.lack of financing

c.failure to maximize profit

d.inability to establish effective barriers to entry

e.inefficient production methods

117.              Even if the steel industry is an oligopoly, there may be more firms competing with the
                            steel firms than you would think because

a.economies of scale exist

b.barriers to entry can be overcome

c.firms in other industries producing close substitutes may compete in the markets in
which steel firms compete

d.economic profit lures other firms into the industry

e.there is high product differentiation

118.              The physical or perceived differences between goods in a market that makes them close,
                            but not perfect, substitutes are called

a.complementary goods

b.substitute goods

c.natural differentiation

d.oligopolistic differentiation

e.product differentiation

119.              Lisa prepared a delicious dinner for her friends after making the following purchases at
                            the local supermarket. For which of the purchases would Lisa not be choosing among
                            goods having product differentiation?

a.canned tomatoes

b.fresh eggplant

c.boxed spaghetti

d.shredded cheese

e.red wine

120.              The big labels in the music industry, such as Sony, Time-Warner, and Universal, are
                            churning out thousands of CD albums each year that compete against each other for your
                            dollar. But, considering the CD industry only, they also compete against 

a.records

b.cassette tapes

c.used CDs

d.stereos

e.used textbooks

Dec 11 2019 View more View Less

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