Question

CHAPTER 8, TEST A

Answer 1

The marking of the statements 1-18 as true or false is as follows:

1. True.  The main similarity among the four market structures is the existence of buyers and sellers.

What are the four market structures?

The four market structures are:

• Perfect competition
• Monopolistic competition
• Oligopoly
• Monopoly.

They all have buyers and sellers, though, the number differs from one to the other.

2. True. In a perfectly competitive market, buyers and sellers have relevant information about prices, product quality, and sources of supply.

3. True. The stock market is an example of a perfectly competitive market.

4. True. If a perfectly competitive market doesn't satisfy all four characteristics 100 percent, then it is not a perfectly competitive market.

5. True. Profit attracts new firms into the perfectly competitive market.

6. False because there is no ease of entry into a monopolistic market.

7. False.  It is not important to a monopolist to search out the best price through trial and error.

8. True.  In some towns, cable television providers and trash collectors are monopolists.

9. False. Copyright is not required on medicine to protect a pharmaceutical company from competitors.  But a patent is required because copyrights are for intellectual property rights.

10. False. Patents are usually granted for 20 years and not five years.

11. True. Barriers to entry limit potential competition.

12. True. Owning all of a scarce resource can allow a firm to operate as a monopoly without legal protection.   This is regarded as a natural monopoly.

13. True.  Antitrust laws are meant to control monopoly power and promote competition.

14. True. The Sherman Act prohibits anti-trust actions, which restrain trade.

15. True. A natural monopoly exists when a firm's product is made with resources provided by nature.

16. True. The U.S. Supreme Court decides some antitrust cases.

17. True. The term colluding refers to making secret agreements that reduce competition.

18. True. Taxi and limousine service in New York City is relatively inexpensive due to the ease of entry into that market.

Thus, the marking of statements 1-18 as true or false is completed.

Learn more about monopolies and anti-trust acts at brainly.com/question/8379521