Multiple choice problems on monopoly
1) Suppose which a company hiring labour in a perfectly competitive factor market increases the quantity of labour from 20 workers to 21 workers. If the marginal factor cost for the twenty- first worker is $10, the market wage is
a) $ 10
2) If the benefits of a public good exceed its cost:
a) The market can still provide efficiently if the company is a price setter
b) Government agencies may either capable to produce the good themselves or pay private companies to capable to produce it.
c) People really do not value the good
d) The free- rider notion does not apply.
3) In the case of public good s:
a) The role of government is to stay out of the picture and let the market provide them.
b) Government could capable to produce the goods
c) Government would never pay private companies to capable to produce them.
d) There is no incentive to be a free ride.
4) Antitrust policy refers to government:
a) Attempts to prevent the acquisition of monopoly power.
b) Attempts to encourage the exercise of monopoly power
c) Encouragement of collusion in the market place
d) Attempts to limit private enterprise
5) The first law designed to curb monopoly power in the United States was the act
a) Sherman Antitrust
c) Federal business commission
d) Robinson- Patman
6) An act which sought to prohibit companies from conspiring to restrain business was the
a) Federal business commission act
b) Federal Reserve act
c) Grant act
d) Sherman antitrust act
7) If an organization conspired with or cooperated with other companies to raise prices, it would be in violation of the act
a) Business Decency
b) Sherman Antitrust
d) Federal business commission
8) Price - fixing is outlawed by the
a) Sherman antitrust act
b) Clayton act
c) federal business commission act
d) Caller- Kefauver act
9) Which agency was created by congress in 1914 to investigate and regulate unfair methods of competition?
a) the department of Justice
b) The federal business commission
c The interstate commerce commission
d) the general account office
e) the council of competitiveness
10) If a company engages in a vertical merger which substantially reduces competition , then it is likely to be in violation of the
a . Clayton act
b) caller - Kefauver act
c) Sherman antitrust act
d) Federal business commission act