Chapter 9 Test Bank

Chapter 9 Test Bank - CHAPTER 21 Pure Competition Topic...

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Unformatted text preview: CHAPTER 21 Pure Competition Topic Question numbers ___________________________________________________________________________________________________ 1. Four market models 1-10 2. Pure competition defined; demand curve 11-34 3. Profit maximizing in short run 35-147 4. Profit maximizing in long run 148-187 5. Pure competition and efficiency 188-211 Consider This 212-213 Last Word 214-216 True-False 217-239 ___________________________________________________________________________________________________ Multiple Choice Questions Four market models Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 1. Economists would describe the U.S. automobile industry as: A) purely competitive. B) an oligopoly. C) monopolistically competitive. D) a pure monopoly. Ans: B Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 2. In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies? A) pure monopoly B) oligopoly C) monopolistic competition D) pure competition Ans: B Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 3. Which of the following industries most closely approximates pure competition? A) agriculture B) farm implements C) clothing D) steel Ans: A Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Definition 4. Economists use the term imperfect competition to describe: A) all industries which produce standardized products. B) any industry in which there is no nonprice competition. C) a pure monopoly only. D) those markets which are not purely competitive. Ans: D Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 5. In which of the following industry structures is the entry of new firms the most difficult? A) pure monopoly B) oligopoly C) monopolistic competition D) pure competition Ans: A Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 6. An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of: A) monopolistic competition B) oligopoly C) pure monopoly D) pure competition Ans: A Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of Concept 7. A one-firm industry is known as: A) monopolistic competition B) oligopoly C) pure monopoly D) pure competition Ans: C Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 8. An industry comprised of four firms, each with about 25 percent of the total market for a product is an example of: A) monopolistic competition B) oligopoly C) pure monopoly D) pure competition Ans: B Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 9. An industry comprised of a very large number of sellers producing a standardized product is known as: A) monopolistic competition B) oligopoly C) pure monopoly D) pure competition Ans: D Econ: 400 LO: 21-1 Micro: 166 Topic: 1 Type: Application of a Concept 10. An industry comprised of a small number of firms, each of which considers the potential reactions of its 10....
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Chapter 9 Test Bank - CHAPTER 21 Pure Competition Topic...

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