Microeconomics Quiz
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Questions and Answers

What does a monopoly firm do to avoid deadweight loss?

  • Participate in oligopoly markets
  • Implement negative externalities in production
  • Increase advertisement spending
  • Engage in price discrimination (correct)
  • What is the method to achieve efficient use of common resources?

  • Subsidies
  • Property rights (correct)
  • Taxes
  • Marketable permits
  • What is the term for a cost that arises from production and falls on someone other than the producer?

  • Monopoly
  • Oligopoly
  • Implicit cost
  • Negative externality (correct)
  • In which market structure does the number of firms increase and the market looks more like a competitive market?

    <p>Oligopoly</p> Signup and view all the answers

    How do monopoly firms behave in terms of setting prices?

    <p>They do not have a supply curve</p> Signup and view all the answers

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