The Dynamics of Imperfect Markets (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the key defining feature of a monopoly?
What is the key defining feature of a monopoly?
Absence of competition and substitutes
How do monopolists differ from businesses in perfect competition regarding pricing?
How do monopolists differ from businesses in perfect competition regarding pricing?
Monopolists are price makers
Which barrier prevents new businesses from entering a monopoly market?
Which barrier prevents new businesses from entering a monopoly market?
Patents and intellectual property rights
What type of monopoly exists when high development costs prevent market entry?
What type of monopoly exists when high development costs prevent market entry?
Natural monopoly
What relationship exists between demand and average revenue for a monopolist?
What relationship exists between demand and average revenue for a monopolist?
Demand equals average revenue
Where does the marginal revenue curve lie relative to the demand curve for a monopolist?
Where does the marginal revenue curve lie relative to the demand curve for a monopolist?
Below the demand curve
Why is marginal revenue less than price for a monopolist?
Why is marginal revenue less than price for a monopolist?
Lower price applies to all customers
Can monopolists earn economic profit in the long run?
Can monopolists earn economic profit in the long run?
Yes, due to barriers to entry
What happens to total revenue after it reaches its maximum for a monopolist?
What happens to total revenue after it reaches its maximum for a monopolist?
It decreases
Which South African company is an example of a natural monopoly?
Which South African company is an example of a natural monopoly?
Eskom