Also

.In a monopoly, the market demand curve is a) the same as the demand curve facing the firm b) the summation of all the individual firm's demand curves c) nonexistent d) the marginal cost curve the minimum average variable cost

A

1. A cartel tends to be more successful primarily if it can prevent: a) cheating among its members. b) increases in the demand for its product. c) joint-profit maximization. d) international trade. e) an increase in the price of its product.

A

A firm in an imperfectly competitive market is: a) more likely to advertise than a purely competitive firm. b) less likely to advertise than a purely competitive firm. c) neither more nor less likely to advertise than a pure competitor. d) disinterested in advertising.

A

. If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low output levels and upward for high output levels.

B

34.Which of the following is true? a) If price falls below average total cost, the firm will shut down in the short run. b) Price and marginal revenue are the same in perfect competition. c) Economic profit per unit is found by subtracting AVC from price. d) Economic profit is always positive in the short run.

B

The special feature of firms in an oligopoly NOT found in other market structures is: a) homogeneity of product. b) interdependence that is mutually recognized. c) restricted entry. d) a high degree of market power. e) perfectly elastic market demand curve

B

. A firm will choose to operate rather than shut down as long as a) price is greater than or equal to AFC b) AFC is greater than AVC c) price is greater than or equal to AVC d) AVC is greater than MC

C

.Which of the following is true for perfect cpmpetition, monopolisitc competition and single-price monopoly a. Homogenous product b. Zero long-run economic profits c. Short-run profit maximizing quantity where MC=MR d. Easy entry and exit e. None of the above

C

All of the following are examples of price discrimination except: a) discounts for senior citizens at the movies. b) discounts for families with young children at motels. c) generally lower prices at Wal-Mart than at Target. d) cheaper air fares if the traveler stays over a Saturday.

C

In the long run, monopolistically competitive firms: a) produce output at the level that minimizes average total cost. b) set marginal revenue equal to price. c) cannot earn an economic profit. d) produce so that marginal cost equals price.

C

. In an oligopolistic market: a. Only a few dominant firms are present b. Products may be standardized or differentiated c. Each firm considers how rivals might react to its price policies d. All of the above are true.

D

The difference between pure competition and monopolistic competition is that: a) monopolistic competitors generate more profit in the long run. b) monopolistic competitors always avoid short term losses. c) long run entry and exit is possible only in purely competitive industries. d) monopolistic competitors sell differentiated products that are close substitutes.

D