Imperfect Competition Review

Imperfect Competition Review

10th - 12th Grade

15 Qs

quiz-placeholder

Similar activities

AP Microeconomics Imperfect Competition

AP Microeconomics Imperfect Competition

12th Grade

10 Qs

Negative Externalities and Positive Externalities

Negative Externalities and Positive Externalities

11th Grade

12 Qs

Econ Ch7 Market Structures

Econ Ch7 Market Structures

12th Grade

20 Qs

Market Structures Homework

Market Structures Homework

11th Grade

20 Qs

Supply & Demand Quiz #1

Supply & Demand Quiz #1

10th - 12th Grade

13 Qs

AP Micro Imperfect Competition 4.1 - 4.3

AP Micro Imperfect Competition 4.1 - 4.3

12th Grade

10 Qs

Imperfect Competition Review

Imperfect Competition Review

Assessment

Quiz

Social Studies

10th - 12th Grade

Medium

Created by

Julie Walker

Used 18+ times

FREE Resource

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

What is the firm’s profit-maximizing quantity of output?

Q1

Q2

Q3

Q4

Q5

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

What price will the firm charge?

P1

P2

P3

P4

P5

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

The graph shows the cost and revenue curves for a monopoly that produces teddy bears. The letters in the graph represent the enclosed areas.


If the monopolist charges a single price for teddy bears, which of the following describes an accurate outcome?

The consumer surplus equals area (a), the producer surplus equals area (c), and the deadweight loss equals area (b+d+e).

The consumer surplus equals area (b), the producer surplus equals area (c+d), and the deadweight loss equals area (d+e).

The consumer surplus equals area (a+b) the producer surplus equals area (c), and the deadweight loss equals area (e+f).

Consumer surplus equals area (a+b), producer surplus equals area (c+d), and deadweight loss equals area (e).

The consumer surplus equals area (a), the producer surplus equals area (c+f), and the deadweight loss equals (b+d+e).

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

If the monopolist engages in perfect price discrimination, which of the following will happen?

Consumer surplus will remain the same (a+b) and producer surplus will increase by area (e).

Both consumer surplus and producer surplus will decrease by area (a+b+c+d), and the deadweight loss will remain constant.

Consumer surplus will increase by area (e), producer surplus will decrease by area (e), and the deadweight loss will be zero

Consumer surplus and deadweight loss will be zero because all the surplus will be transferred to producer surplus.

Both consumer surplus and producer surplus will increase because output produced will increase to Q2.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

One difference between monopolistic competition and oligopoly is that firms in monopolistic competition are assumed to

cooperate in setting price and outputcooperate in setting price and output

act independently in setting price and output

be interdependent

face high barriers to entry

sell differentiated products

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following explains why imperfectly competitive markets are inefficient?

Total costs increase as output increases.

Price is greater than marginal cost.

Firms do not earn zero economic profit.

Firms incur high start-up costs when setting up their factories.

Firms use relatively more capital than labor to produce goods or services.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is true in imperfectly competitive markets?

Firms produce standardized or identical products.

Firms enjoy economies of scale in production.

Firms produce output at constant marginal cost.

Firms must lower their product prices to sell additional units.

New firms can easily enter or exit the market.

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?