Monopoly Impacts and Government Interventions

Q.

If governments put a price ceiling on patented drugs, what will happen to the production of the drugs?

1. Production of the drug increases

2. Production of the drug decreases

3. Production of the drug may increase or decrease depending on demand

4. The firm will shut down and stop production.

Q.

When the government enforces a price ceiling on a good, which is lower than the current market price, _________.

1. a perfectly competitive firm produces more

2. a perfectly competitive firm produces less

3. a monopoly firm produces more

4. a monopoly firm produces less

Q.

What are the ways in which large firms can hurt the society?

1. Large firms can set very low prices to drive out the competition

2. Neither A nor B

3. If large firms are monopolies, they can charge very high prices from the consumers

4. Both A and B

Q. If the government imposes a price ceiling on patented drugs such that it is still profitable, then production of the drug will .

1. not change
2. be stopped
3. decrease
4. increase

Q. In order to prevent large firms from becoming monopolies, artificial barriers to entry for PREVENTION like can be imposed.

1. price regulation
2. economies of scale
3. anti-trust laws
4. key resources

Q. Monopolists become more inefficient with government intervention and price discrimination.

1. False
2. True

Q. Fill in the blank.

1. +20
2. +10
3. +3
4. +7

Q. Which of the following options can be used to add $15$ and $11$ using skip counting?