Question

28.All of the following are types of barriers to entry in a Monopoly market except for:

a.government franchising of a firm

b.differentiation among firms

c.control over an input

d.an existing patent

29. A Monopoly can continue to make a profit or a loss in the long run.

a.True

b.False

30. Laws that prevent monopolies from forming are called ___________ laws.

a.anti-trust

b.anti-firm

c.anti-profit

d.anti-revenue

31.Monopolistic competition is a market structure where many producers of identical products compete with one another

a.True

b.False

32.What gives the monopolistically competitive firm some degree of monopoly power?

a.differentiated products

b.identical products

c.high long-run economic profits

d.zero long-run economic profits

33. Which of the following is often the result of free entry by other firms into monopolistic competition?

a.Losses are often magnified in the long run.

b.Losses increase while profits decrease in the long run.

c.Profits often increase in the long run.

d.Profits are often eliminated in the long run.

34. If total revenue is greater than total costs at q*, the firm is generating total economic profits.

a.True

b.False

Answer 1

28.All of the following are types of barriers to entry in a Monopoly market except for:

Answer:b.differentiation among firms

..

29. A Monopoly can continue to make a profit or a loss in the long run.

a.True

As there are barriers to entry the existing profit or loss is not eliminated by entry or exit of new firms.

..

30. Laws that prevent monopolies from forming are called ___________ laws.

a.anti-trust laws are the laws that prevent forming of monopoly.

..

31.Monopolistic competition is a market structure where many producers of identical products compete with one another

b.False

In monopolistic competition firm produces differentiated product, in perfect competition firms produce identical products

...

32.What gives the monopolistically competitive firm some degree of monopoly power?

a.differentiated products

Due to differentiated products the monopolistic competition firm has a market power as it's product is somewhat unique and it doesn't lose all the buyers if it raises it's price.

..

33. Which of the following is often the result of free entry by other firms into monopolistic competition?

d.Profits are often eliminated in the long run.

Seeing firms earning profits new firms will enter the market as a result supply curve shifts to the right lowering price thus eliminating the profits in long run.

..

34. If total revenue is greater than total costs at q*, the firm is generating total economic profits.

a.True

Profit = revenue - costs

So if revenue >costs then firm is earning economic profit