Do you understand monopoly?

This quiz tests your knowledge of market structures examining the area of monopoly

published on March 12, 2011
1/5

In a monopoly

One firm produces a good for which there are very few substitues
One firm produces a good for which there are many substitutes
2/5

Which of the following is not a barrier to entry in a monopoly

Hint: 1 choice
The granting of patents or copyrights
Raw materials are distributed evenly among companies
Significant economies of scale
All of the above
3/5

Which of the following is an example of a monopoly

Hint: 1 choice
Miller - beer manufacturer
Avonmore - dairy producers
Microsoft - computer technology corporation
4/5

The demand curve for a monopoly is

The same as the demand curve for the industry
Flat as monopolies are price takers
5/5

Monopolies earn supernormal profits in

Hint: 1 choice
The long run
The short run
Both the long run and the short run