{SOLVED} American Military University - ECON 201 / ECON201 - Week 6 Quiz Q&A (2022)

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ECON 201 Week 6 Quiz Question 2 of 17 An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rival... s is prohibitively difficult is:  A. a duopoly.  B. a monopoly.  C. an oligopoly.  D. perfect competition. Question 3 of 17 Which of the following is true in a perfectly competitive market?  A. One unit of a good or service cannot be differentiated from any other on any basis.  B. Brand preferences exist but are very slight.  C. Barriers to entry are relatively strong.  D. Information is costly. Question 4 of 17 The assumptions of perfect competition imply that:  A. individuals in the market accept the market price as given.  B. individuals can influence the market price.  C. the price will be a fair price.  D. the price will be low. Question 5 of 17 Which of the following is true?  A. Price and average revenue are never equal.  B. Price and marginal revenue are seldom equal under conditions of perfect competition.  C. When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.  D. Average revenue equals price times quantity. Question 6 of 17 If a firm possesses monopoly power, it means that:  A. the firm can set its own price based on its output decision.  B. the firm's demand curve is always elastic.  C. the firm is necessarily a monopoly.  D. A and C are true. [Show More]

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