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Home / Questions / Andrew Carnegie, the first U.S. steel mogul, built his empire by a.patenting each new t

Andrew Carnegie, the first U.S. steel mogul, built his empire by a.patenting each new t

  Andrew Carnegie, the first U.S. steel mogul, built his empire by

a.patenting each new type of steel

b.owning all of the U.S. iron ore deposits

c.being the most efficient, that is, having the lowest ATC

d.buying up his competitors

e.enlisting the protection of the government

23.              Clorox Bleach and generic brands have the exact same proportions of chlorine and other
                            active ingredients. The reason that people continue to purchase Clorox at twice the price
                            of the generic brand is the

a.price elasticity of demand classifies them as belonging to the same market

b.low cross elasticity between Clorox and the generic brand

c.high cross elasticity between Clorox and the generic brand

d.perceived differences on the part of consumers

e.income elasticity of demand is higher for the Clorox brand

24.              Some people refuse to buy Japanese cars because they believe it is anti-American. Others
                            refuse to buy American cars because they believe that Japanese cars are superior. In this
                            highly competitive market, the Mitsubishi Eclipse and Eagle Talon, which have identical
                            engines, transmissions, bodies and paint, are a good example of

a.goods belonging to two separate markets

b.complementary goods

c.perfect competition

d.product differentiation

e.barriers to entry

25.              The reason why firms in perfect competition do not advertise is because

a.their demand curves are all downward sloping and if they sell more it would have to
be at a lower price

b.they differentiate themselves, as with milk

c.they are typically small in size and cannot produce for a wider market

d.there is no entry into the industry

e.there is no product differentiation among the goods produced

26.              Suppose a monopolist chooses to advertise its good and its own demand curve shifts to
                            the right, then we know that

a.the industry’s demand curve shifts in precisely the same way

b.its competitors share some of the benefits of the advertising

c.the monopolist’s cost curves will shift to accommodate the shift in demand

d.the price of substitute goods will fall

e.consumers are turned off by the advertising and buy less at every price

27.              In perfect competition, the buyers are usually looking for

a.easy entry

b.familiar brands

c.higher-quality goods

d.volume discounts

e.the lowest price

28.              In a perfectly competitive market, a firm that raises its price when its competitors do not

a.must have a differentiated product

b.must have relatively high costs and therefore must raise price to compensate

c.sells no goods

d.gains market share

e.will become a monopolist eventually

29.              If a shoe monopoly experiences an outward shift in its demand curve, the industry 
                            demand curve for shoes must have

a.shifted slightly less

b.been flat to begin with

c.shifted slightly more

d.shifted more quickly

e.made the exact same shift

30.              From what you know about the different kind of monopolies, which answer best
                            describes the natural ones?

a.They only exist because the government has established patent laws.

b.They can produce services, but not goods.

c.The market supports only two or three firms.

d.Potential competitors are purchased before they can enter.

e.There is a declining ATC throughout the relevant range of production.

Dec 12 2019 View more View Less

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