1. A monopoly:

a. always makes a profit.

b. can force consumers to purchase what it is selling.

c. is characterized by a single seller who produces a well-defined product for which there are no good substitutes.

d. always has naturally created barriers.

e. always has government-created barriers.

2. Monopolists:

a. enjoy market power for their specific product.

b.  have no market power for their specific product.

c.  will never experience a loss.

d.  always experience economies of scale.

e. exist in all markets.

3. Barriers to entry:

a. measure the ability of firms to set the price for a good.

b. o not exist for monopolies.

c. always lead to profits.

d. restrict the entry of new firms into the market.

e. exist for perfectly competitive firms.

4. A monopolistically competitive market consists of __________ seller(s), an oligopoly consists of __________ seller(s), and a monopoly consists of one seller.

a. one; many

b. one; two

c. a few; many

d. many; one

e. many, a few

5.   A firm operating in an oligopolistic market has __________ market power compared to a __________.

a.   less; firm operating in a perfectly competitive market

b.   the same amount of; firm operating in a perfectly competitive market

c.   less; monopolist

d.   the same amount of; monopolist

e.   more; monopolist