Question 1

Figure 13-1
​  
-In Figure 13-1, for a monopolistically competitive firm, long-run equilibrium can occur only at the quantity indicated by which point?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 2

What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world.

Accepted Answer

The four types are perfect competition (

Question 3

What is a repeated game? How does this helps the players in a game?

Accepted Answer

A repeated game is one that is played ov

Question 4

Oligopolists

Accepted Answer

A) are price takers. 
B) rarely advertise. 
C) must take rivals' reactions into account. 
D) offer homogeneous products. 
A) are price takers. 
B) rarely advertise. 
C) must take rivals' reactions into account. 
D) offer homogeneous products.

Question 5

A perfectly competitive firm and a monopolistically competitive firm are similar in each of the following respects except

Accepted Answer

A) each has many buyers and sellers. 
B) firms sell homogeneous products in both markets. 
C) in having perfect information. 
D) for freedom of exit and entry. 
A) each has many buyers and sellers. 
B) firms sell homogeneous products in both markets. 
C) in having perfect information. 
D) for freedom of exit and entry.

Question 6

Because members of a cartel have a strong incentive to cheat on production and pricing agreements, these groups often develop complicated enforcement arrangements.

Accepted Answer

A) True 
 B)False

Question 7

The maximin criterion seeks to minimize the maximum payoffs in order to win.

Accepted Answer

A) True 
 B)False

Question 8

Cartels provide uniform management, but none of the advantages of economies of scale.

Accepted Answer

A) True 
 B)False

Question 9

Figure 13-3
​  
-In Figure 13-3, according to economic theory, the kink in the demand curve will occur at point

Accepted Answer

A) E. 
B) A. 
C) C. 
D) D. 
A) E. 
B) A. 
C) C. 
D) D.

Question 10

If, in a given market of multiple producers, there is a positive gap between price and average cost (P > AC) for an extended period of time, this would suggest that

Accepted Answer

A) there are many sellers in the industry. 
B) there exists an oligopoly or cartel in the industry. 
C) this is a contestable market. 
D) the firm cannot be a monopolistic competitor. 
A) there are many sellers in the industry. 
B) there exists an oligopoly or cartel in the industry. 
C) this is a contestable market. 
D) the firm cannot be a monopolistic competitor.

Question 11

Society benefits from monopolistic competition because the firms are allocatively efficient.

Accepted Answer

A) True 
 B)False

Question 12

Price leadership works only if there is a single, dominant firm in the oligopoly.

Accepted Answer

A) True 
 B)False

Question 13

Deviations from the perfectly competitive market can lead to

Accepted Answer

A) inefficiently high production costs. 
B) higher prices and smaller outputs. 
C) less efficient resource allocation. 
D) All of the responses are correct. 
A) inefficiently high production costs. 
B) higher prices and smaller outputs. 
C) less efficient resource allocation. 
D) All of the responses are correct.

Question 14

Tacit collusion is

Accepted Answer

A) collusion that is carried out without any explicit agreement among firms. 
B) collusion about tactics, rather than strategy. 
C) agreements that are sponsored by government. 
D) similar to pure competition. 
A) collusion that is carried out without any explicit agreement among firms. 
B) collusion about tactics, rather than strategy. 
C) agreements that are sponsored by government. 
D) similar to pure competition.

Question 15

An oligopoly can be characterized by production of either identical goods or differentiated goods.

Accepted Answer

A) True 
 B)False

Question 16

Sticky prices are a direct result of the kinked demand curve.

Accepted Answer

A) True 
 B)False

Question 17

International trade can be correctly considered as an example of a zero-sum game.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a requirement for the existence of monopolistic competition in a market?

Accepted Answer

A) Numerous small sellers 
B) Full information about the market among buyers and sellers 
C) Product homogeneity 
D) Freedom of entry into the market 
A) Numerous small sellers 
B) Full information about the market among buyers and sellers 
C) Product homogeneity 
D) Freedom of entry into the market

Question 19

Oligopolies are difficult to analyze because of the interdependent nature of management decisions.

Accepted Answer

A) True 
 B)False

Question 20

Markets in which the behavior of the firms theoretically leads to an efficient allocation of resources that maximizes the benefits to consumers given the resources available to consumers are

Accepted Answer

A) monopolistic competition and oligopoly. 
B) monopoly and oligopoly. 
C) monopolistic competition and monopoly. 
D) perfect competition and perfectly contestable. 
A) monopolistic competition and oligopoly. 
B) monopoly and oligopoly. 
C) monopolistic competition and monopoly. 
D) perfect competition and perfectly contestable.

Exam 13: Between Competition and Monopoly

Figure 13-1 ​ -In Figure 13-1, for a monopolistically competitive firm, long-run equilibrium can occur only at the quantity indicated by which point?

What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world.

What is a repeated game? How does this helps the players in a game?

Oligopolists

A perfectly competitive firm and a monopolistically competitive firm are similar in each of the following respects except

Because members of a cartel have a strong incentive to cheat on production and pricing agreements, these groups often develop complicated enforcement arrangements.

The maximin criterion seeks to minimize the maximum payoffs in order to win.

Cartels provide uniform management, but none of the advantages of economies of scale.

Figure 13-3 ​ -In Figure 13-3, according to economic theory, the kink in the demand curve will occur at point

If, in a given market of multiple producers, there is a positive gap between price and average cost (P > AC) for an extended period of time, this would suggest that

Society benefits from monopolistic competition because the firms are allocatively efficient.

Price leadership works only if there is a single, dominant firm in the oligopoly.

Deviations from the perfectly competitive market can lead to

Tacit collusion is

An oligopoly can be characterized by production of either identical goods or differentiated goods.

Sticky prices are a direct result of the kinked demand curve.

International trade can be correctly considered as an example of a zero-sum game.

Which of the following is not a requirement for the existence of monopolistic competition in a market?

Oligopolies are difficult to analyze because of the interdependent nature of management decisions.

Markets in which the behavior of the firms theoretically leads to an efficient allocation of resources that maximizes the benefits to consumers given the resources available to consumers are

What Is Economics

The Economony: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Useconomy

Filters

Figure 13-1 -In Figure 13-1, for a monopolistically competitive firm, long-run equilibrium can occur only at the quantity indicated by which point?

Figure 13-3 -In Figure 13-3, according to economic theory, the kink in the demand curve will occur at point