Micro. Chapter 14

3. The automobile, household appliance, and automobile tire industries are all illustrations of

B. differentiated oligopoly

5. Other things equal, cartels and similar collusive arrangements are easier to establish and maintain

B. during periods of business-cycle stability and full employment

10. Advertising can impede economic efficiency when it

B. leads to greater monopoly power

11. Suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl index of 3,000. Most likely, this industry would achieve

B. neither productive efficiency nor allocative efficiency

1. The term oligopoly indicates

C. a few firms producing either a differentiated or a homogenous product

12. The conclusion that oligopoly in inefficient relative to the competitive ideal must be qualified because

C. over time oligopolistic industries may promote more rapid product development and greater improvement of production techniques than if they were purely competitive

4. If the several oligopolistic firms that compose an industry behave collusively, the resulting price and output will most likely resemble those of

C. pure monopoly

6. Which of the following nations is not a member of the OPEC oil cartel?

A. Norway

8. Advertising can enhance economic efficiency when it

A. increases consumer awareness of substitute products

9. We would expect a cartel to achieve

A. neither allocative efficiency nor productive efficiency

2. Oligopolistic industries are characterized by

D. a few dominant firms and substantial entry barriers

7. Secret conspiracies to fix prices are examples of

D. covert collusion