Week 3 Knowledge Check 
Week 3 Knowledge Check Study Guide
Concepts
Mastery
Score: 7 / 7
Questions
MONOPOLY
100%
1
OLIGOPOLOY
100%
2
PROFIT MAXIMIZATION
100%
3
4
MARKET STRUCTURE
100%
5
6
7
Concept: MONOPOLY
Mastery
100%
Questions
1.
In a monopolistically competitive market,
A. firms produce differentiated products
1
B. there are barriers to entry
C. firms produce homogeneous products
D. the demand for any firm's product is perfectly elastic
Correct:
The Correct Answer is: A.
Concept: OLIGOPOLOY
Mastery
100%
Questions
2.
Strategic decision making is most important in
A. competitive markets
B. monopolistically competitive markets
2
C. oligopolistic markets
D. monopolistic markets
Correct:
The Correct Answer is: C.
Concept: PROFIT MAXIMIZATION
Mastery
100%
Questions
3
4
3.
The general monitoring problem implies that
A. profit maximization should always be considered to be a firm's goal B. there is a cost of supervising employees so that they work toward the owner's goals rather than their own
C. government must intervene to protect national goals
D. competition will ensure common goals among the owners and managers of a firm
Correct:
The Correct Answer is: B.
4.
Lazy monopolists are characterized by the tendency to
A. maximize profits at the cost of losing market share
B. pay too much to protect their monopoly positions
C. earn enough profits to keep their shareholders happy without trying too hard to hold costs down
D. minimize losses so that the dividends of shareholders are maximized Correct:
The Correct Answer is: C.
Concept: MARKET STRUCTURE
Mastery
100%
Questions
5
6
7
5.
Judgment by performance means that the competitiveness of a market is determined by
A. the actual behavior of firms in the market
B. the structure of the industry
C. . the number of firms in the market
D. technological considerations
Correct:
The Correct Answer is: A.
6.
Consumers tend to accept the market restrictions imposed by suppliers because
A.
Concepts
Mastery
Score: 7 / 7
Questions
MONOPOLY
100%
1
OLIGOPOLOY
100%
2
PROFIT MAXIMIZATION
100%
3
4
MARKET STRUCTURE
100%
5
6
7
Concept: MONOPOLY
Mastery
100%
Questions
1.
In a monopolistically competitive market,
A. firms produce differentiated products
1
B. there are barriers to entry
C. firms produce homogeneous products
D. the demand for any firm's product is perfectly elastic
Correct:
The Correct Answer is: A.
Concept: OLIGOPOLOY
Mastery
100%
Questions
2.
Strategic decision making is most important in
A. competitive markets
B. monopolistically competitive markets
2
C. oligopolistic markets
D. monopolistic markets
Correct:
The Correct Answer is: C.
Concept: PROFIT MAXIMIZATION
Mastery
100%
Questions
3
4
3.
The general monitoring problem implies that
A. profit maximization should always be considered to be a firm's goal B. there is a cost of supervising employees so that they work toward the owner's goals rather than their own
C. government must intervene to protect national goals
D. competition will ensure common goals among the owners and managers of a firm
Correct:
The Correct Answer is: B.
4.
Lazy monopolists are characterized by the tendency to
A. maximize profits at the cost of losing market share
B. pay too much to protect their monopoly positions
C. earn enough profits to keep their shareholders happy without trying too hard to hold costs down
D. minimize losses so that the dividends of shareholders are maximized Correct:
The Correct Answer is: C.
Concept: MARKET STRUCTURE
Mastery
100%
Questions
5
6
7
5.
Judgment by performance means that the competitiveness of a market is determined by
A. the actual behavior of firms in the market
B. the structure of the industry
C. . the number of firms in the market
D. technological considerations
Correct:
The Correct Answer is: A.
6.
Consumers tend to accept the market restrictions imposed by suppliers because
A.