ECON101 Week 7 Quiz Latest 2017

Question 1 of 10

Monopolistic competition is an industry characterized by a:

A. small number of firms producing identical products, with barriers to entry for firms.

B. small number of firms producing similar products, with relatively easy entry for firms.

C. large number of firms producing similar products, with relatively easy entry for firms.

D. large number of firms producing identical products, with relatively easy entry for firms.

Question 2 of 10

Imperfect competition is:

A. a market structure with no more than one firm in the industry.

B. an industry in which all firms are price takers.

C. a market structure where firms have a degree of monopoly power.

D. described by all of the above.

Question 3 of 10

Imperfect competition includes:

A. monopolistic competition and oligopoly.

B. monopolistic competition and monopoly.

C. perfect competition and monopoly.

D. monopoly and oligopoly.

Question 4 of 10

A firm in monopolistic competition maximizes its profit by producing at the level at which:

A. MC = ATC.

B. MC = AR.

C. MC = P.

D. MC = MR.

Question 5 of 10

An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called:

A. perfect competition.

B. monopoly.

C. monopolistic competition.

D. oligopoly.

Question 6 of 10

An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it.

A. actions; rivals; reactions

B. price changes ; total revenue in a positive way; reactions

C. actions rarely; rivals; actions

D. price increases; total revenue in the long run only; large but not small price changes

Question 7 of 10

A concentration ratio is used to measure:

A. efficiency.

B. diseconomies of scale.

C. marginal cost.

D. market dominance.

Question 8 of 10

An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, is a(n):

A. monopoly.

B. oligopoly.

C. monopolistic competition.

D. perfect competition.

Question 9 of 10

Price for a firm under monopolistic competition is:

A. equal to marginal revenue.

B. greater than marginal revenue.

C. less than marginal revenue.

D. greater than total revenue.

Question 10 of 10

Unwritten or unspoken understandings through which firms collude to restrict competition are called:

A. cartelization.

B. oligopolization.

C. overt collusion.

D. tacit collusion.