Paper Help | Local telephone, electric, or gas utilities would

Local telephone, electric, or gas utilities would

Local telephone, electric, or gas utilities would 1. Local telephone, electric, or gas utilities would best be described by which market model? (Points : 1)Monopolistic competitionPure competitionPure monopolyOligopolyQuestion 2. 2. If a monopolized industry should become purely competitive without any change in cost conditions: (Points : 1)Both price and quantity produced will increaseBoth price and quantity produced will decreasePrice will increase and quantity produced will decreasePrice will decrease and quantity produced will increaseQuestion 3. 3. Which is not a basic market model? (Points : 1)Pure competitionFree enterpriseOligopolyMonopolyQuestion 4. 4. Price is constant or “given” to the individual firm selling in a purely competitive market because: (Points : 1)The firm’s demand curve is downward slopingThere are no good substitutes for the firm’s productEach seller supplies a negligible fraction of total supplyProduct differentiation is reinforced by extensive advertisingQuestion 5. 5. In pure competition, price is determined where the industry: (Points : 1)Demand and supply curves intersectTotal cost is greater than total revenueDemand intersects the firm’s marginal cost curveAverage total cost equals total variable costsQuestion 6. 6. What is a potential negative effect of advertising? (Points : 1)It provides important information to consumersIt promotes monopoly power in industryIt contributes to allocative and productive efficiencyIt lowers search costs in product purchasesQuestion 7. 7. One difference between monopolistic competition and pure competition is that: (Points : 1)products can be standardized or differentiated in pure competition.there is some control over price in monopolistic competition.monopolistic competition has significant barriers to entry.firms differentiate their products in pure competition.Question 8. 8. A purely competitive firm does not try to sell more of its product by lowering its price below the market price because: (Points : 1)Its competitors would not permit itIt can sell all it wants to at the market priceThis would be considered unethical price chiselingIts demand curve is inelastic, so total revenue will declineQuestion 9. 9. Which case below best represents a case of price discrimination? (Points : 1)An insurance company offers discounts to safe driversA major airline sells tickets to senior citizens at lower prices than to other passengersA professional baseball team pays two players with identical batting averages different salariesA utility company charges less for electricity used during “off-peak” hours, when it does not have to operate its less-efficient generating plantsQuestion 10. 10. A nondiscriminating pure monopolist is generally viewed as: (Points : 1)Productively efficient, but allocatively inefficientProductively inefficient, but allocatively efficientBoth productively and allocatively inefficientBoth productively and allocatively efficient