Sources of Market Power

Q.

The main sources of monopoly power are ___________.

1. control of a key resource

2. economies of scale

3. diseconomies of scale

4. network externalities

Q.

In many sectors like national railway or electricity distribution, natural monopolies are beneficial because _________.

1. greater supply would push prices up

2. limited supply would push prices down

3. the economies of scale helps drive the cost down.

4. network externalities would help drive the costs down.

Q.

Which of the following is a form of legal market power?

1. Economies of scale

2. Control of a key resource

3. Network externalities

4. Copyrights

Q.

Which of the following are examples of legal market power?

1. Patented medicines

2. Copyrighted books

3. Facebook

4. Indian Railways

Q.

When market power is obtained through barriers to entry created by a firm itself, the market power is called ___ market power.

Q.

When market power is obtained through barriers to entry created by the government or a regulatory body, the market power is called ___ market power.

Q. A emerges because of economies of scale which makes it efficient for only one firm to produce.

1. patented monopoly
2. natural monopoly
3. oligopoly
4. resource monopoly

Q. Intellectual property ownership is mainfested in the form of .

1. patent
2. copyrights
3. royalty
4. special status

Q. Patents are a form of .

1. natural market power
2. price market power
3. social market power
4. legal market power

Q. is awarded by the government which gives a producer the sole authority to produce/sell a good or service.

1. copyright
2. patent
3. externalities
4. royalty