Question 1

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Accepted Answer

A)  John Nash. 
B)  John Maynard Keynes. 
C)  Oskar Morgenstern. 
D)  Milton Friedman. 
A)  John Nash. 
B)  John Maynard Keynes. 
C)  Oskar Morgenstern. 
D)  Milton Friedman. C

Question 2

Consumers benefit from monopolistic competition by

Accepted Answer

A)  being able to choose from products more closely suited to their tastes. 
B)  paying the lowest possible price for the product. 
C)  paying the same price as everyone else. 
D)  being able to purchase high-quality products at low prices. 
A)  being able to choose from products more closely suited to their tastes. 
B)  paying the lowest possible price for the product. 
C)  paying the same price as everyone else. 
D)  being able to purchase high-quality products at low prices. A

Question 3

Which government agency publishes four-firm concentration ratios?

Accepted Answer

A)  the Economic Council 
B)  the Federal Reserve System 
C)  the U.S. Bureau of the Census 
D)  the Treasury Department 
A)  the Economic Council 
B)  the Federal Reserve System 
C)  the U.S. Bureau of the Census 
D)  the Treasury Department C

Question 4

If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items,the company will

Accepted Answer

A)  no longer be monopolistically competitive. 
B)  continue to earn substantial economic profits in the long run. 
C)  eventually suffer economic losses, as do all fast-casual restaurants. 
D)  likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away. 
A)  no longer be monopolistically competitive. 
B)  continue to earn substantial economic profits in the long run. 
C)  eventually suffer economic losses, as do all fast-casual restaurants. 
D)  likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.

Question 5

Figure 11-13
  
-Refer to Figure 11-13.What is the output price?

Accepted Answer

A)  P₄ 
B)  P₃ 
C)  P₂ 
D)  P₁ 
A)  P₄ 
B)  P₃ 
C)  P₂ 
D)  P₁

Question 6

A market comprised of only two firms is called a

Accepted Answer

A)  competitive market. 
B)  duopoly. 
C)  monopoly. 
D)  monopolistically competitive market. 
A)  competitive market. 
B)  duopoly. 
C)  monopoly. 
D)  monopolistically competitive market.

Question 7

Which of the following is true for a firm with a downward-sloping demand curve for its product?

Accepted Answer

A)  Price, average revenue, and marginal revenue are all equal. 
B)  Price, average revenue, and marginal revenue are all different. 
C)  Price equals average revenue but is greater than marginal revenue. 
D)  Price equals average revenue but is less than marginal revenue. 
A)  Price, average revenue, and marginal revenue are all equal. 
B)  Price, average revenue, and marginal revenue are all different. 
C)  Price equals average revenue but is greater than marginal revenue. 
D)  Price equals average revenue but is less than marginal revenue.

Question 8

A set of actions that a firm takes to achieve a goal is the definition of a

Accepted Answer

A)  business plan. 
B)  business strategy. 
C)  business prospectus. 
D)  business goal. 
A)  business plan. 
B)  business strategy. 
C)  business prospectus. 
D)  business goal.

Question 9

If firms in a monopolistically competitive market are earning economic profits,which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?

Accepted Answer

A)  Demand decreases and becomes less elastic. 
B)  Demand decreases and becomes more elastic. 
C)  Demand increases and becomes less elastic. 
D)  Demand increases and becomes more elastic. 
A)  Demand decreases and becomes less elastic. 
B)  Demand decreases and becomes more elastic. 
C)  Demand increases and becomes less elastic. 
D)  Demand increases and becomes more elastic.

Question 10

Oligopolies are difficult to analyze because

Accepted Answer

A)  the firms are so large. 
B)  demand and cost curves do not exist for these types of industries. 
C)  how firms respond to a price change by a rival is uncertain. 
D)  oligopolies are a recent development so economists have not had time to develop models. 
A)  the firms are so large. 
B)  demand and cost curves do not exist for these types of industries. 
C)  how firms respond to a price change by a rival is uncertain. 
D)  oligopolies are a recent development so economists have not had time to develop models.

Question 11

If a significant number of consumers switch from ordering food delivery from traditional restaurants to ordering from "ghost restaurants," a "ghost restaurant" will likely find its demand curve shifting to the ________ and its marginal revenue curve shifting to the ________ as more competitors enter the market.

Accepted Answer

A)  right; right 
B)  right; left 
C)  left; right 
D)  left; left 
A)  right; right 
B)  right; left 
C)  left; right 
D)  left; left

Question 12

In the short run,a profit-maximizing firm's decision to produce should be guided by whether

Accepted Answer

A)  it makes a profit. 
B)  its marginal profit is maximized. 
C)  its total revenue exceeds its fixed cost. 
D)  its total revenue covers its variable cost. 
A)  it makes a profit. 
B)  its marginal profit is maximized. 
C)  its total revenue exceeds its fixed cost. 
D)  its total revenue covers its variable cost.

Question 13

A monopolistically competitive market is described as one in which there are

Accepted Answer

A)  a few firms producing an identical product. 
B)  a large number of firms selling similar, but not identical, products. 
C)  a few firms producing differentiated products. 
D)  one large firm and many small firms producing identical products. 
A)  a few firms producing an identical product. 
B)  a large number of firms selling similar, but not identical, products. 
C)  a few firms producing differentiated products. 
D)  one large firm and many small firms producing identical products.

Question 14

For the monopolistically competitive firm,

Accepted Answer

A)  Price (P) = Marginal Revenue (MR) = Average Revenue (AR). 
B)  P = MR > AR. 
C)  P = AR > MR. 
D)  P > MR = AR. 
A)  Price (P) = Marginal Revenue (MR) = Average Revenue (AR). 
B)  P = MR > AR. 
C)  P = AR > MR. 
D)  P > MR = AR.

Question 15

In San Francisco there are many restaurants that specialize in a wide variety of cuisines.Patronage at these restaurants is influenced by factors such as tastes,price,and location.This market is

Accepted Answer

A)  perfectly competitive. 
B)  monopolistically competitive. 
C)  oligopolistic. 
D)  monopolistic. 
A)  perfectly competitive. 
B)  monopolistically competitive. 
C)  oligopolistic. 
D)  monopolistic.

Question 16

Figure 11-13
  
-Refer to Figure 11-13.What is the area that represents the firm's profit?

Accepted Answer

A)  profit = 0 
B)  P₄edP₂ 
C)  P₄eaP₁ 
D)  P₃baP₂ 
A)  profit = 0 
B)  P₄edP₂ 
C)  P₄eaP₁ 
D)  P₃baP₂

Question 17

Which of the following is an example of a way in which an oligopolistic firm can escape the prisoner's dilemma?

Accepted Answer

A)  producing more of its product 
B)  advertising that it will match its rival's price 
C)  reneging on a previous tacit agreement with rival firms to charge identical high prices 
D)  ignoring the pricing decisions of the other firms 
A)  producing more of its product 
B)  advertising that it will match its rival's price 
C)  reneging on a previous tacit agreement with rival firms to charge identical high prices 
D)  ignoring the pricing decisions of the other firms

Question 18

The demand curve of a monopolistically competitive firm

Accepted Answer

A)  is horizontal because the firm must cut its price to sell more. 
B)  is perfectly elastic. 
C)  is downward-sloping because it sells an identical product. 
D)  is downward-sloping because it must cut its price to sell more. 
A)  is horizontal because the firm must cut its price to sell more. 
B)  is perfectly elastic. 
C)  is downward-sloping because it sells an identical product. 
D)  is downward-sloping because it must cut its price to sell more.

Question 19

Figure 11-13
  
-Refer to Figure 11-13.What is the area that represents the firm's total cost?

Accepted Answer

A)  P₁aQ₁0 
B)  P₁cQ₃0 
C)  P₄eQ₄0 
D)  P₂dQ₄0 
A)  P₁aQ₁0 
B)  P₁cQ₃0 
C)  P₄eQ₄0 
D)  P₂dQ₄0

Question 20

The fraction of an industry's sales that are accounted for by the four largest firms is called

Accepted Answer

A)  the four-firm competition ratio. 
B)  the four-firm concentration ratio. 
C)  the four-firm industry ratio. 
D)  the four-firm oligopoly ratio. 
A)  the four-firm competition ratio. 
B)  the four-firm concentration ratio. 
C)  the four-firm industry ratio. 
D)  the four-firm oligopoly ratio.

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Consumers benefit from monopolistic competition by

Which government agency publishes four-firm concentration ratios?

If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items,the company will

Figure 11-13 -Refer to Figure 11-13.What is the output price?

A market comprised of only two firms is called a

Which of the following is true for a firm with a downward-sloping demand curve for its product?

A set of actions that a firm takes to achieve a goal is the definition of a

If firms in a monopolistically competitive market are earning economic profits,which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?

Oligopolies are difficult to analyze because

If a significant number of consumers switch from ordering food delivery from traditional restaurants to ordering from "ghost restaurants," a "ghost restaurant" will likely find its demand curve shifting to the and its marginal revenue curve shifting to the as more competitors enter the market.

In the short run,a profit-maximizing firm's decision to produce should be guided by whether

A monopolistically competitive market is described as one in which there are

For the monopolistically competitive firm,

In San Francisco there are many restaurants that specialize in a wide variety of cuisines.Patronage at these restaurants is influenced by factors such as tastes,price,and location.This market is

Figure 11-13 -Refer to Figure 11-13.What is the area that represents the firm's profit?

Which of the following is an example of a way in which an oligopolistic firm can escape the prisoner's dilemma?

The demand curve of a monopolistically competitive firm

Figure 11-13 -Refer to Figure 11-13.What is the area that represents the firm's total cost?

The fraction of an industry's sales that are accounted for by the four largest firms is called

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

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Exam 11: Monopolistic Competition and Oligopoly

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Consumers benefit from monopolistic competition by

Which government agency publishes four-firm concentration ratios?

If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items,the company will

Figure 11-13 -Refer to Figure 11-13.What is the output price?

A market comprised of only two firms is called a

Which of the following is true for a firm with a downward-sloping demand curve for its product?

A set of actions that a firm takes to achieve a goal is the definition of a

If firms in a monopolistically competitive market are earning economic profits,which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?

Oligopolies are difficult to analyze because

In the short run,a profit-maximizing firm's decision to produce should be guided by whether

A monopolistically competitive market is described as one in which there are

For the monopolistically competitive firm,

In San Francisco there are many restaurants that specialize in a wide variety of cuisines.Patronage at these restaurants is influenced by factors such as tastes,price,and location.This market is

Figure 11-13 -Refer to Figure 11-13.What is the area that represents the firm's profit?

Which of the following is an example of a way in which an oligopolistic firm can escape the prisoner's dilemma?

The demand curve of a monopolistically competitive firm

Figure 11-13 -Refer to Figure 11-13.What is the area that represents the firm's total cost?

The fraction of an industry's sales that are accounted for by the four largest firms is called

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters