In a perfectly competitive market profit attracts entry.

In a perfectly competitive market profit attracts entry.
 a. True
  b. False

QUESTION 2

If a perfectly competitive industry is monopolized, consumer surplus
 a. can be expected to decrease
  b. will usually remain constant
  c. can be expected to increase
  d. drops from a high value to zero
  e. increases from zero to a high value

QUESTION 3

Ersatz Kreme will sell its filling to Hunky Donuts only if Hunky Donuts agrees not to buy filling from other suppliers. This is an example of
 a. price discrimination
  b. exclusive dealing
  c. a tying contract
  d. interlocking directorates
  e. a trust

QUESTION 4

Internet auctions
 a. allow specialized sellers to reach many customers at low cost
  b. allow specialized buyers to reach many sellers at low cost
  c. always take the form of a Dutch auction
  d. always take the form of an English open outcry auction
  e. are rapidly being replaced by continuous open outcry auctions

QUESTION 5

Compared to a perfectly competitive market, a monopoly tends to produce
 a. more output and charge a higher price
  b. the same amount of output, but charge a higher price
  c. less output and charge a higher price
  d. less output and charge the same price
  e. less output and charge a lower price

QUESTION 6

A camera manufacturer will sell its cameras only to retailers who agree to buy its brand of film. This is an example of
 a. price discrimination
  b. exclusive dealing
  c. a tying contract
  d. interlocking directorates
  e. a trust

QUESTION 7

In an English open outcry auction,
 a. bidding opens at a high price and then the price falls until only one buyer remains
  b. bids and offers may be made in any order
  c. sellers with market power capture most of the benefit
  d. sellers outnumber buyers
  e. bidding opens at a low price and the price then increases until only one buyer remains

QUESTION 8

A profit-maximizing monopolist produces an output level that is allocatively inefficient because
 a. price is greater than marginal cost
  b. price is less than marginal cost
  c. marginal revenue is greater than marginal cost
  d. marginal revenue is less than marginal cost
  e. consumers wish to purchase all that is produced