Monopoly (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
15 questions from this quiz
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Practise the questions
15 questions from this quiz
What defines a monopoly market structure?
What defines a monopoly market structure?
Single firm with no close substitutes
What is a monopolist's role in setting prices?
What is a monopolist's role in setting prices?
Price maker
Where does a profit-maximising monopolist produce?
Where does a profit-maximising monopolist produce?
Where
Can a monopolist earn supernormal profit in the long run?
Can a monopolist earn supernormal profit in the long run?
Yes, due to barriers to entry
What prevents other firms entering a monopoly market?
What prevents other firms entering a monopoly market?
High barriers to entry
What is dynamic efficiency?
What is dynamic efficiency?
Improving efficiency via R&D over time
What is X-inefficiency?
What is X-inefficiency?
Higher costs due to lack of competition
Is a profit-maximising monopolist productively efficient?
Is a profit-maximising monopolist productively efficient?
No, doesn't produce at lowest
Is a profit-maximising monopolist allocatively efficient?
Is a profit-maximising monopolist allocatively efficient?
No, sets price above
What is price discrimination?
What is price discrimination?
Charging different prices to consumers
What is third-degree price discrimination?
What is third-degree price discrimination?
Different prices for different groups
What condition prevents price discrimination failing?
What condition prevents price discrimination failing?
Consumers cannot resell the product
What is a natural monopoly?
What is a natural monopoly?
One firm supplies market at lowest cost
Where is the curve relative to the demand curve?
Where is the curve relative to the demand curve?
Below the demand curve
What shape is a natural monopoly's curve?
What shape is a natural monopoly's curve?
Downward sloping