Question 1

_______ is situation in which a single company or group owns all or nearly all of the market for a given type of product or service.

Accepted Answer

A) monopsony 
B) oligopoly 
C) perfect competition 
D) monopoly 
A) monopsony 
B) oligopoly 
C) perfect competition 
D) monopoly

Question 2

In the long run, a constant cost industry

Accepted Answer

A) has an upward sloping supply curve as the quantity supplied increases with increases in demand 
B) expands in response to an increase in demand despite rising input costs, and so the long run supply curve is horizontal 
C) can expand in response to an increase in demand without input costs changing, and so the long run supply curve is horizontal 
D) does not expand in response to an increase in demand and so the long run supply curve is horizontal 
A) has an upward sloping supply curve as the quantity supplied increases with increases in demand 
B) expands in response to an increase in demand despite rising input costs, and so the long run supply curve is horizontal 
C) can expand in response to an increase in demand without input costs changing, and so the long run supply curve is horizontal 
D) does not expand in response to an increase in demand and so the long run supply curve is horizontal

Question 3

In the long run, a perfectly competitive firm earning zero economic profits

Accepted Answer

A) will exit the market in search of more profitable use of its resources 
B) is earning a normal rate of return on its investments 
C) signifies that the firm is performing poorly and so should exit the market 
D) will break even 
A) will exit the market in search of more profitable use of its resources 
B) is earning a normal rate of return on its investments 
C) signifies that the firm is performing poorly and so should exit the market 
D) will break even

Question 4

The larger the number of firms in an oligopoly, the ________ the price and the ________ the output of the industry.

Accepted Answer

A) lower, greater 
B) higher, lesser 
C) higher, greater 
D) lower, lesser 
A) lower, greater 
B) higher, lesser 
C) higher, greater 
D) lower, lesser

Question 5

Profit maximization for a perfectly competitive firm is at the quantity where

Accepted Answer

A) price equals marginal revenue 
B) the difference between price and marginal cost is the greatest 
C) price equals marginal cost 
D) marginal cost is at a minimum 
A) price equals marginal revenue 
B) the difference between price and marginal cost is the greatest 
C) price equals marginal cost 
D) marginal cost is at a minimum

_______ is situation in which a single company or group owns all or nearly all of the market for a given type of product or service.

In the long run, a constant cost industry

In the long run, a perfectly competitive firm earning zero economic profits

The larger the number of firms in an oligopoly, the the price and the the output of the industry.

Profit maximization for a perfectly competitive firm is at the quantity where

Market Models, Structures and Competition

Market Power and Pricing Strategies

Market Structures and Pricing

Monopoly and Perfect Competition

Market Structures and Equilibrium in Economics

Market Structures and Perfect Competition

Understanding Market Structures and Firm Behavior

Money and Market Structures

Economy and Inflation

Macroeconomic Policies and Business Cycles

Economics and Market Structures

Competitive and Monopolistic Markets

The Economics of Monopolistic Competition and Monopoly

Monopoly, Price Discrimination, and Oligopoly: Exploring Market Structures and Strategies

Market Structures and Equilibrium

Filters

Exam 2: Principles of Market Structures and Microeconomic Theory

_______ is situation in which a single company or group owns all or nearly all of the market for a given type of product or service.

In the long run, a constant cost industry

In the long run, a perfectly competitive firm earning zero economic profits

The larger the number of firms in an oligopoly, the ________ the price and the ________ the output of the industry.

Profit maximization for a perfectly competitive firm is at the quantity where

Market Models, Structures and Competition

Market Power and Pricing Strategies

Market Structures and Pricing

Monopoly and Perfect Competition

Market Structures and Equilibrium in Economics

Market Structures and Perfect Competition

Understanding Market Structures and Firm Behavior

Money and Market Structures

Economy and Inflation

Macroeconomic Policies and Business Cycles

Economics and Market Structures

Competitive and Monopolistic Markets

The Economics of Monopolistic Competition and Monopoly

Monopoly, Price Discrimination, and Oligopoly: Exploring Market Structures and Strategies

Market Structures and Equilibrium

Filters

The larger the number of firms in an oligopoly, the the price and the the output of the industry.