In which of the following cases we are concerned with the possibility of market failure?
economics
Description
1) Anti-trust laws prohibit price
cuts:
a) In
all circumstances.
b) When
price cuts decrease the total surplus.
c) When
a firm decreases its price below its own marginal cost.
d) Never.
2)
Anti-trust laws
a) Often
interfere with firms’ normal business practices.
b) Decrease
output efficiency.
c) Cause
inflation.
d) None
of the above.
e) Both
a and b.
3)
Which of the following is correct?
a) Collusions
are announced illegal in the US according to the Robinson act of 1914.
b) Collusion
is illegal in the US because it decreases firm’s market share.
c) Mergers
can be legal in the US because they may help technical efficiency.
d) All
of the above.
e) None
of the above.
4)
A monopoly often produces where
a) MSB>MSC
b) D=S
c) a
and b
d) None
of the above.
5)
Suppose that market produces where MSB<MSC.
a) This
is an example of output efficiency.
b) This
is an example of dead weight loss.
c) This
can happen due to negative externalities.
d) None
of the above.
e) Both
b and c.
6)
In which of the following cases we are concerned with
the possibility of market failure?
a)
Oligopolies.
b)
Competitive markets.
c)
Positive externalities.
d)
All of the above.
e)
c and a.
7)
A monopoly
a)
Produces more than the efficient quantity and chargers
a price higher than a perfectly competitive firm.
b)
Usually produces where MSC>MSB.
c)
Usually produces where MSC<MSB.
d)
a and c.
e)
a and b.
8)
MSB
a)
Is the same as the market demand curve in some
circumstances.
b)
Shows the society’s extra gain from an extra unit of an
economic activity.
c)
Is always the same as the market demand.
d)
Both a and b
e)
Both b and c.
9) Refer to Figure 1. A competitive market produces
a) 120
b) 40
c) 60
d) 80
10) The efficient quantity is:
a) 20
b) 40
c) 80
d) 60
11)
Refer to the same figure. The surplus generated by the 120th unit of
output is
a)
8
b)
4
c)
-4
d)
-8
12) Refer to the same figure. If
firms merge to be a monopoly, then the market produces …
|
S=MSC |
|
D=MSB |
Related Questions in economics category
Get Higher Grades Now
Tutors Online
Get Free Quote!
376 Experts Online
