econmics review help!!!!!!?

32) The best example of a monopolistically competitive industry is: 32)

A) music stores. B) grocery stores.

C) mobile phone service. D) A and B are correct.

33) A monopolistic competitive market has the following characteristics EXCEPT: 33)

A) the product is homogeneous. B) no barriers to entry.

C) many sellers. D) relatively elastic demand.

34) Assume that there is only one firm producing electric toothbrushes and its firm specific demand

curve is the same as the market demand curve. If a second firm that also produces electric

toothbrushes enters the market, profit of the first firm decreases because:

34)

A) it produces less electric toothbrushes.

B) the competition between the two firms causes the price to go down.

C) its average cost of production raises due to higher demand.

D) A and B are correct.

35) Which of the following characteristics is shared by both monopolistically competitive markets and

perfectly competitive markets?

35)

A) firms face downward sloping demand curves

B) identical products across sellers

C) small number of interdependent sellers

D) no barriers to entry

36) Which of the following characteristics is shared by both monopolistically competitive markets and

monopoly markets?

36)

A) free entry

B) Firms are price takers.

C) Firms face downward sloping demand curves.

D) identical products across sellers

37) As a result of product differentiation, a firm in a monopolistically competitive market: 37)

A) always has some market power.

B) faces a perfectly elastic demand curve.

C) is very similar to a firm in a perfectly

d is very similar to a monopolist.

43) With respect to output production, a monopolistically competitive firm produces: 43)

A) identical amount of output as a perfectly competitive firm.

B) less amount of output than a perfectly competitive firm.

C) more amount of output than a perfectly competitive firm.

D) none of the above.

51) Oligopoly is a market: 51)

A) with many firms and a homogeneous product.

B) with one firm and many different products.

C) with a few firms and the actions of one firm have a small impact on the others.

D) with a few firms and the actions of one firm have a large impact on the others.

52) Which of the following is the best example of an oligopolistic industry? 52)

A) airline services B) cleaning services

C) designer shoes D) local water utility

53) Which of the following statements is always true for the firms in an oligopoly? 53)

A) Each firm ignores the possible reactions of its rivals when making decisions.

B) Each firm sells a differentiated product.

C) There are barriers to entry.

D) Each firm is small relative to the market.

54) An oligopoly could occur for one of the following reasons: 54)

A) There are no barriers to entry.

B) There is only one firm in the industry.

C) There are small economies of scale in production.

D) advertising campaigns

55) A cartel is: 55)

A) another word for a duopoly.

B) a group of firms that coordinate their pricing decisions.

C) a type of oligopoly in which the demand curve is "kinked."

D) a group of firms that all produce the same level of output.

60) What is a prisoners' dilemma? 60)

A) a game in which prisoners are stumped because they cannot communicate with each other

B) a game that involves no dominant strategies

C) a game in which players collude to outfox authorities

D) a game in which players act in rational, self-interested ways that leave everyone worse off

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  • 7 years ago
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    You'll find all of these answers by actually reading your Economics textbook!

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