University:
Bradley University
Course:
ECO 199 | Foundational Topics in Economics
Academic year:

2023
Views:

498

Pages:

2
Author:

5prinzg1s

Fill-In – Fill in the blank using the appropriate word or phrase. 1. A market with only one seller and high barriers to entry is known as a _____. 2. In monopoly, the firm chooses the quantity where marginal revenue equals _____. 3. The change in total revenue from selling one additional unit is called _____. 4. A firm that experiences decreasing per-unit costs as output increases may be considered a _____ monopoly. 5. When a monopolist lowers the price to sell more units, it must lower the price on _____ units. 6. A government-issued right that prevents others from producing the same product is a _____. 7. In the long run, monopolistically competitive firms earn _____ economic profit. 8. The additional cost of producing one more unit is called _____ cost. 9. A key characteristic of monopolistic competition is that firms sell _____ products. 10. In a _______________ industry, firms use marketing and branding to gain price-setting power. 11. A monopolist will shut down in the short run if the price falls below _____ variable cost. 12. When firms spend on marketing to create brand identity, their costs are _____ than those of a pure monopolist. 13. Prices charged by perfectly competitive firms will tend to be ______ than prices charged by monopolies. 14. A monopolistically competitive firm uses its _____ curve to determine the price after choosing quantity. 15. Entry and exit of firms in monopolistic competition make the firm’s demand curve more _____ over time. Answers 1. monopoly 2. marginal cost 3. marginal revenue 4. natural 5. all 6. patent 7. zero 8. marginal 9. differentiated 10. monopolistically competitive 11. average 12. higher 13. lower 14. demand 15. elastic