econ11 - Submitted by Le, Thao (THAOLE2) on 11/28/2011...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Submitted by Le, Thao (THAOLE2) on 11/28/2011 7:39:08 AM Points Awarded 23.50 Points Missed 1.50 Percentage 94.0% 1. When there are just a few firms in the industry, the industry structure is most likely to be: A) a perfectly competitive industry. B) an oligopoly market. C) a monopoly market. D) a natural monopoly market. Points Earned: 0.5/0.5 Correct Answer(s): B 2. Oligopoly differs from monopoly and perfect competition in that: A) firms consider each others actions when choosing price and quantity. B) there are a few firms in the industry. C) firms act strategically. D) all of the above Points Earned: 0.5/0.5 Correct Answer(s): D 3. Market power is the power to
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A) control prices. B) gain another firm's customers. C) reduce price below cost to deter entry. D) control output. Points Earned: 0.5/0.5 Correct Answer(s): A 4. Which one of the following is the best example of an oligopolistic industry? A) cigarettes B) wheat growers C) apple growers D) public utilities Points Earned: 0.5/0.5 Correct Answer(s): A 5. A special case of an oligopoly where there are only two firms is called: A) a monopoly. B) a duopoly. C) perfect competition. D) monopolistic competition. Points Earned: 0.5/0.5 Correct Answer(s): B 6. When firms cooperate with each other rather than compete: A) consumers will end up better off. B) the firms will end up better off. C) both consumers and firms end up better off. D) they will agree to set low prices to help each other out. Points Earned: 0.5/0.5 Correct Answer(s): B
Background image of page 2
7. An arrangement under which a number of firms acts as a single firm and coordinate their pricing decisions is: A) a monopoly. B) monopolistic competition. C) price fixing. D) perfect competition. Points Earned: 0.5/0.5 Correct Answer(s): C 8. When firms compete with each other rather than cooperate: A) consumers will end up better off. B) the firms will end up better off. C) prices will be higher. D) output will be lower. Points Earned: 0.5/0.5 Correct Answer(s): A 9. Cartels engage in price fixing in order to: A) drive out competition. B) retain customers. C) increase profits. D) promote entry. Points Earned: 0.5/0.5 Correct Answer(s): C 10. In general, firms in a cartel: A) agree to set price equal to marginal cost. B) do not consider the actions of the other firms in the cartel when making output decisions. C) produce levels of output exceeding the monopoly output level. D) agree to charge the price the monopolist would charge. Points 0.5/0.5
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Earned: Correct Answer(s): D 11. In general, the market price in an oligopoly market is: A) lower than in perfect competition. B) higher than in perfect competition. C) the same as in perfect competition. D) The answer depends on the shape of the average cost curve. Points
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 18

econ11 - Submitted by Le, Thao (THAOLE2) on 11/28/2011...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online