review9-11 - Chapters 9 10 11(Practice Questions 1...

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Chapters 9, 10, 11 (Practice Questions) 1) Economists would describe ‘AT & T I-Phone’ as a) purely competitive. b) an oligopoly. c) monopolistically competitive. d) a pure monopoly. Ans: d 2) The demand curves for firms in a purely competitive industry are perfectly inelastic. True False Ans: False 3) 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 1
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d) pure competition Ans: b 4) Which of the following industries most closely approximates pure competition? a) agriculture b) farm implements c) clothing d) steel Ans: a 5) A one-firm industry is known as: a) monopolistic competition b) oligopoly c) pure monopoly d) pure competition Ans: b 6) 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 2
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Ans: b 7) 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 8) The MR = MC rule applies: a) to firms in all types of industries. b) only when the firm is a "price taker." c) only to monopolies. d) only to purely competitive firms. Ans: a 9) The MR = MC rule can be restated for a purely competitive seller as P = MC because: a) P=MR. b) the firm's average revenue curve is 3
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downsloping. c) the market demand curve is downsloping. d) the firm's marginal revenue and total revenue curves will coincide. Ans: a
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review9-11 - Chapters 9 10 11(Practice Questions 1...

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