Monopoly Basics: AP Microeconomics Online Test

The monopoly producer has control over: I Production II Price III Consumers
I only
II only
III only
I, II
I, II and III
The slope of the Demand Curve of a Monopoly firm is:
Upward sloping
Downward sloping
Horizontal, parallel to X- Axis
Vertical, parallel to Y- Axis
Cannot be determined
For a Monopoly firm, the demand for the product is:
Elastic
Inelastic
Unitary Elastic
All of the above
Depends upon the product
For a firm under Monopoly, a decrease in Output causes the Total Revenue to increase, when the Price Elasticity of Demand is:
Equal to 1
Less than 1
Greater than 1
Zero
Infinite
Under Monopoly, the difference between Marginal Cost and Price is due to the:
Marginal Cost
Price
Average Revenue Curve is different from the Marginal Revenue Curve.
Price is different from the cost
None of the Above
For a Pure Monopoly, there is/are:
Only one Firm, no Industry
Only Industry, no Firm
A few firms
The Firm and the Industry are the same
A few industries
In an Imperfect Monopoly:
There are three or more firms producing the same product.
New firms can enter but with some difficulties
The Monopolist Product can be substituted with another Monopolist Product
The various firms plan the production of the product together
All of the above
In the real world, Pure Monopoly is not possible because:
There is wider competition in terms of goods not closely related to each other.
The Barriers to entry of firms are not strong enough for a Monopoly to exist
The input market has the Perfect Competition structure
The consumer’s tastes and preferences keep changing
All goods and producers ultimately compete for the limited Income of the consumer.
The Monopolist I controls the supply of Output II determines the Price
I only
II only
Either I or II at the one time
I and II
I and II in a Pure Monopoly
For the Pure Monopolist, the best level of Output is when:
Short run Marginal Cost = Average Variable Cost
Short run Marginal Cost = Short run Average Cost
Short run Marginal Cost = Marginal Revenue
Short run Marginal Cost = Average Revenue or Demand Curve
All of the Above
Description:

Take this short test to assess the basics of the Monopoly Market Structure, its features and properties. Here is a 7-minute short test on the basics of Monopoly. You’ll find Multiple Choice questions on the basics of the features of Monopoly.

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