ECONTEST2REVIEW

ECONTEST2REVIEW - A market in economics is a group of...

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A market in economics is a group of products a. that are close substitutes . b. that are complements. c. produced by the same firm. d. produced with the same inputs. e. with similar names. If cross elasticity between Coke and Pepsi is infinite, this implies a. the two colas are perfect substitutes. b. the two colas are perfect complements. c. the two colas are close but not perfect substitutes. d. consumers would not switch to one good when the price of the other increases. e. these two goods are not related. Entry is easiest if a market is a. monopolistically competitive. b. a monopoly. c. an oligopoly. d. perfectly competitive. Suppose Electronics Inc. is the only firm producing a new type of CD player. If more firms enter the market, the demand curve observed by Electronics Inc. a. shifts to the right and becomes less elastic. b. shifts to the right and becomes more elastic. c. shifts to the left and becomes less elastic. d. shifts to the left and becomes more elastic. A monopolist's market share is a. 100 percent. b. 80 percent. c. 60 percent. d. 40 percent. e. zero. When all producers of a product have a market share that is very close to zero, they a. will go out of business in the long run.
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b. are each producing output close to zero. c. are operating in a perfectly competitive market. d. are an oligopoly. e. should raise the price to make more profits. The market demand for a perfectly competitive industry is a. perfectly horizontal at the level of market price. b. perfectly vertical at the level of market price. c. upward sloping. d. downward sloping. The firm demand curve observed by a firm in a perfectly competitive industry is __________ while that observed by a monopolist is ____________. a. horizontal; downward sloping b. horizontal; horizontal c. downward sloping; horizontal d. downward sloping; downward sloping The market demand for a monopolistically competitive industry is a. perfectly horizontal at the level of market price. b. identical to that observed by the firm. c. downward sloping. d. a and b. e. b and c. Which of the following is a characteristic of an oligopoly? a. It is easy for new firms to enter the market. b. Price changes by one firm affect the pricing behavior of other firms in the market. c. There are a large number of very small firms. d. Individual firms in the market have insignificant market share. The government claims that Electronics Inc. is a monopolist. Which of the following would support its claim? a. Other firms can easily enter Electronics Inc.'s market. b. Electronics Inc. is a large firm. c. Electronics Inc. has exclusive access to the inputs necessary to produce the good in its market.
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d. Other firms produce close substitutes for Electronics Inc.'s products. In which market structure does an individual firm not have influence
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ECONTEST2REVIEW - A market in economics is a group of...

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