31 a consequence of the quota that has been imposed

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31) A consequence of the quota that has been imposed on the importation of sugar into the United States is 31) A) the market for sugar in the United States has become monopolistically competitive rather than oligopolistic. B) the cost of producing cereal, chocolate and candy products in the United States is reduced. C) competition in the U.S. sugar market is reduced. D) consumers are protected from eating unsafe products made from cheap imported sugar. Answer: C Diff: 1 Page Ref: 463/463
Topic: Government - Imposed Barriers Learning Outcome: Micro 5: List ways in which governments intervene in markets and explain the consequences of such intervention AACSB: Reflective Thinking 8
TRUE/FALSE. Write ʹ T ʹ if the statement is true and ʹ F ʹ if the statement is false. 32) If firms are protected by substantial barriers to entry, short - run profits can turn into long - run profits. Answer: 32) Diff: 1 Page Ref: 463/463
Topic: Barriers to Entry Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Reflective Thinking 33) The four - firm concentration ratio of the aircraft industry is over 80 percent. Most economists would consider this industry an oligopoly. 33) Answer: Diff: 1 Page Ref: 460/460
Topic: Concentration Ratio Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Reflective Thinking 34) The most important barrier to entry is economies of scale. Answer: 34) Diff: 1 Page Ref: 461/461
Topic: Barriers to Entry Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Reflective Thinking 35) Because of the flaws of the concentration ratio as a measure of the extent of competition in an industry, some economists prefer another measure of competition, the Herfindahl - Hirschman Index. 35) Answer: True False Diff: 2 Page Ref: 460 - 461/460 - 461
Topic: Concentration Ratio Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Reflective Thinking 36) In an oligopoly, minimum efficient scale is likely to occur at a level of output that is a large fraction of industry sales. 36) Answer: Diff: 2 Page Ref: 461 - 462/461 - 462
Topic: Economies of Scale

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