Micro Ch_9 Vocab Quiz

Fill in the blank: Allocative efficiency is producing the optimal quantity of some output where the marginal benefit to society of one more unit just equals the _________.

• marginal cost.

• average cost.

• total cost.

• fixed cost.

Barriers to entry are the legal, technological, or market forces that may discourage or prevent potential competitors from ________ a market.

• entering

• leaving

• dominating

• ignoring

Fill in the blank: Copyright is a form of legal protection to prevent ________, for commercial purposes, original works of authorship.

• copying

• selling

• publishing

• distributing

Deregulation involves removing government controls over setting ________ and quantities in certain industries.

• prices

• taxes

• subsidies

• tariffs

Intellectual property includes patents, trademarks, copyrights, and trade secret law that protect the right of inventors to ________ and sell their inventions.

• produce

• destroy

• ignore

• hide

A legal monopoly involves legal prohibitions against ________, such as regulated monopolies.

• competition

• innovation

• collaboration

• expansion

Fill in the blank: Marginal profit is the profit of one more unit of output, computed as marginal revenue minus ________.

• marginal cost

• fixed cost

• average cost

• total cost

A monopoly is a situation in which one firm produces all of the ________ in a market.

• output

• competition

• demand

• supply

A natural monopoly occurs where economic conditions in the industry limit effective ________.

• competition

• innovation

• regulation

• expansion

Fill in the blank: A patent is a government rule that gives the inventor the exclusive legal right to make, use, or ________ the invention for a limited time.

• sell

• destroy

• ignore

• hide