Question 1

The square of the percentage market share of each firm summed over the 50 largest firms in a market is the

Accepted Answer

A) elasticity of demand value. 
B) elasticity of supply value. 
C) Herfindahl-Hirschman Index. 
D) four-firm concentration ratio. 
E) fifty-firm concentration ratio. 
A) elasticity of demand value. 
B) elasticity of supply value. 
C) Herfindahl-Hirschman Index. 
D) four-firm concentration ratio. 
E) fifty-firm concentration ratio.

Question 2

-The above figure shows a motel engaged in monopolistic competition with other motels.The equilibrium quantity at this motel is ________ rooms per day.

Accepted Answer

A) 200 
B) 300 
C) 400 
D) 500 
E) 100 
A) 200 
B) 300 
C) 400 
D) 500 
E) 100

Question 3

A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for its product and is able to charge ________.

Accepted Answer

A) less elastic;a lower price than before 
B) less elastic;a higher price than before 
C) more elastic;a lower price than before 
D) more elastic;a higher price than before 
E) less elastic;the same price as before 
A) less elastic;a lower price than before 
B) less elastic;a higher price than before 
C) more elastic;a lower price than before 
D) more elastic;a higher price than before 
E) less elastic;the same price as before

Question 4

Why are firms in monopolistic competition unable to earn an economic profit in the long run?

Accepted Answer

While firms in monopolistic competition

Question 5

When duopoly games are repeated and a "tit for tat" strategy is used,

Accepted Answer

A) the competitive outcome is more likely to be reached than when the game is played once. 
B) the monopoly outcome is more likely to be reached than when the game is played once. 
C) both firms begin to incur economic losses. 
D) one firm goes out of business. 
E) Because the game is repeated,it is impossible to predict whether the competitive or the monopoly outcome is more likely. 
A) the competitive outcome is more likely to be reached than when the game is played once. 
B) the monopoly outcome is more likely to be reached than when the game is played once. 
C) both firms begin to incur economic losses. 
D) one firm goes out of business. 
E) Because the game is repeated,it is impossible to predict whether the competitive or the monopoly outcome is more likely.

Question 6

Which of the following is NOT similar between monopolistic competition and perfect competition?

Accepted Answer

A) Many firms compete in the market. 
B) It's easy to enter the market. 
C) The firms have downward sloping demand curves. 
D) The firms might incur economic losses in the short run. 
E) In the long run,the firms earn zero economic profit. 
A) Many firms compete in the market. 
B) It's easy to enter the market. 
C) The firms have downward sloping demand curves. 
D) The firms might incur economic losses in the short run. 
E) In the long run,the firms earn zero economic profit.

Question 7

When the Herfindahl-Hirschman Index for an industry is

Accepted Answer

A) very small,the industry can be perfectly competitive. 
B) very large,the industry can be perfectly competitive. 
C) 10,000,the industry is perfectly competitive. 
D) very small,the industry can be a monopoly. 
E) above 5,000,the industry is considered not very competitive,and when it is below 5,000,the industry is considered very competitive. 
A) very small,the industry can be perfectly competitive. 
B) very large,the industry can be perfectly competitive. 
C) 10,000,the industry is perfectly competitive. 
D) very small,the industry can be a monopoly. 
E) above 5,000,the industry is considered not very competitive,and when it is below 5,000,the industry is considered very competitive.

Question 8

A firm in monopolistic competition

Accepted Answer

A) has no control over the price of the product it is selling. 
B) might be selling a brand name product. 
C) does not advertise nor market its product. 
D) Both answers A and B are correct. 
E) Answers A,B,and C are correct. 
A) has no control over the price of the product it is selling. 
B) might be selling a brand name product. 
C) does not advertise nor market its product. 
D) Both answers A and B are correct. 
E) Answers A,B,and C are correct.

Question 9

What does monopolistic competition have in common with monopoly?

Accepted Answer

A) a large number of firms 
B) a downward-sloping demand curve 
C) the ability to collude with respect to price 
D) mutual interdependence 
E) barriers to entry 
A) a large number of firms 
B) a downward-sloping demand curve 
C) the ability to collude with respect to price 
D) mutual interdependence 
E) barriers to entry

Question 10

Why are cartels among firms usually kept secret?

Accepted Answer

Cartels are typically kept secret becaus

Question 11

"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?

Accepted Answer

The statement is incorrect.The

Question 12

-The firm in the above figure has an economic profit of ________.

Accepted Answer

A) $0 
B) $80 
C) $160 
D) more than $161 
E) less than zero,that is,the firm has an economic loss 
A) $0 
B) $80 
C) $160 
D) more than $161 
E) less than zero,that is,the firm has an economic loss

Question 13

An oligopoly created because of economies of scale is called a

Accepted Answer

A) natural oligopoly. 
B) legal oligopoly. 
C) public oligopoly. 
D) monopolistic oligopoly. 
E) scale oligopoly. 
A) natural oligopoly. 
B) legal oligopoly. 
C) public oligopoly. 
D) monopolistic oligopoly. 
E) scale oligopoly.

The square of the percentage market share of each firm summed over the 50 largest firms in a market is the

-The above figure shows a motel engaged in monopolistic competition with other motels.The equilibrium quantity at this motel is ________ rooms per day.

A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a demand for its product and is able to charge .

Why are firms in monopolistic competition unable to earn an economic profit in the long run?

When duopoly games are repeated and a "tit for tat" strategy is used,

Which of the following is NOT similar between monopolistic competition and perfect competition?

When the Herfindahl-Hirschman Index for an industry is

A firm in monopolistic competition

What does monopolistic competition have in common with monopoly?

Why are cartels among firms usually kept secret?

"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?

-The firm in the above figure has an economic profit of ________.

An oligopoly created because of economies of scale is called a

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 13: Monopolistic Competition and Oligopoly

The square of the percentage market share of each firm summed over the 50 largest firms in a market is the

-The above figure shows a motel engaged in monopolistic competition with other motels.The equilibrium quantity at this motel is ________ rooms per day.

A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a ________ demand for its product and is able to charge ________.

Why are firms in monopolistic competition unable to earn an economic profit in the long run?

When duopoly games are repeated and a "tit for tat" strategy is used,

Which of the following is NOT similar between monopolistic competition and perfect competition?

When the Herfindahl-Hirschman Index for an industry is

A firm in monopolistic competition

What does monopolistic competition have in common with monopoly?

Why are cartels among firms usually kept secret?

"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?

-The firm in the above figure has an economic profit of ________.

An oligopoly created because of economies of scale is called a

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a demand for its product and is able to charge .