6. Which is true for a monopoly, in terms of allocative efficiency?
Allocative efficiency is not being achieved - P>MC
Allocative efficiency is being achieved - P=MC
Allocative efficiency is not being achieved - P<MC
7. Evidence of monopoly power would be where ?
A firm charged high prices and restricted output in order to make excessive profits
A firm charged high prices in order to make excessive profits
A firm exploits scarce resources to increase output
8. In the UK, the Competition Act (1998) recognises that any firm that has a market share of _________ could have the power to act in a monopolistic way.
25% or more
10% or more
30% or more
9. In a monopoly, which of these comments is true?
Marginal revenue is higher than average cost
Average revenue is higher than average cost
Average cost is higher than average revenue
Price is set where AC=MC
10. What is a monopoly?
A monopoly is a single firm in the market
A monopoly is a few firms in a market
11. Train operating companies run exclusive train services for the duration of their franchise. This is an example of a?
Legal monopolies
Natural monopoly argument
Market leadership
12. The competition act also recognises that a firm with over ____ market share could be dominant
