quiz 9 - 1. Which of the following market models is not...

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1. Which of the following market models is not considered to be imperfect competition ? Pure competition 2. The Both b. and c .model produces for maximum profits where MR = MC and charges a higher price and produces less than the lowest cost output per unit (ATC). 3. The demand elasticity of monopolistic competitors is decreased by an increase in the number of competing firms/outlets with similar products. ( False ) 4. As an Oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to decline significantly. 5. Direct or written agreements that set prices and market share are illegal in the United States. 6. Two of the three market models of imperfect competition are monopolistic competition and oligopoly. 7. In a Oligopoly industry only a few firms will be able to operate successfully because each must have a significant portion of the market to reduce manufacturing costs. 8. The Monopolistic Competition model has the same graphic representation with the same basic price and quantity maximum profit outputs as the Monopoly . 9. In monopolistic competition when consumers consider products as different, the good or service is less elastic. ( True ) 10. In the U.S. price arrangements between oligopoly firms do sometimes exist and are of a subtle nature through observation or informal undocumented contacts between suppliers. 11. In monopolistic competition the customer perception of the similarity of products has no influence on the elasticity of demand. ( False ) 12. In the short run a purely competitive producer will produce if the price is greater than the minimum of the average variable cost. ( True ) 13. In Figure 9.1 above the Monopolistic Competitor would produce at a price of $5.20 14. In the case of heterogeneous Oligopoly markets such as automobiles, there is less specificity in the economic theory. 15. The most distinguishing feature of the Monopolistic competition model is differentiation of the product or service. 16. Which of the following features are characteristic of monopolistic competition ? All the above 17. Some critics of oligopoly state that there is neither government control nor any efficiency in this model. ( True ) 18. Advertising is most important in the
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This note was uploaded on 06/18/2011 for the course ECON 2301 taught by Professor Newbury during the Spring '10 term at Richland Community College.

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quiz 9 - 1. Which of the following market models is not...

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