14) The existence of economic losses induces firms to: exit an industry, which s
ID: 1100121 • Letter: 1
Question
14) The existence of economic losses induces firms to:
exit an industry, which shifts the market supply curve to the left and increases market price.
enter an industry, which shifts the market supply curve to the right and decreases market price.
enter an industry, which shifts the market supply curve to the left and decreases market price.
exit an industry, which shifts the market supply curve to the right and decreases market price.
18)
Strategic decision making is most important in:
competitive markets.
monopolistically competitive markets.
oligopolistic markets.
monopolistic markets.
21)
To prevent price wars and enhance profits, firms in a cartel may:
encourage foreign competition.
accept the price in the marketplace.
establish a contestable market.
collude.
24)
According to the contestable market model, if there are no barriers to entry or exit, the price an oligopolist sets will provide no economic profits in the long run.
True
False
25)
In the contestable market model, an oligopoly with no barriers to entry sets a:
monopoly price.
price that significantly exceeds average total cost.
price that is equal to average total cost.
collusive price.
28)
An important law in the U.S. regulation of markets is the:
Standard Oil Antitrust Act of 1890.
Sherman Antitrust Act of 1890.
Alcoa Antitrust Act of 1890.
Lincoln Antitrust Act of 1890.
31)
In the Justice Department's antitrust case against Microsoft, the Court ruled that there was:
insufficient evidence to reach a ruling.
no evidence of unfair business practices, and Microsoft was not a monopoly.
evidence of unfair business practices, and Microsoft was a monopoly.
evidence of unfair business practices, but Microsoft was not a monopoly.
exit an industry, which shifts the market supply curve to the left and increases market price.
enter an industry, which shifts the market supply curve to the right and decreases market price.
enter an industry, which shifts the market supply curve to the left and decreases market price.
exit an industry, which shifts the market supply curve to the right and decreases market price.
Explanation / Answer
Hi,
Please find the correct and original answers as follows:
14) Option A (exit an industry, which shifts the market supply curve to the left and increases market price) is the correct answer.
18) Option B (monopolistically competitive markets) is the correct answer.
21) Option D (Collude) is the correct answer.
24) True is the correct answer.
25) Option C (price that is equal to average total cost) is the correct answer.
28) Option B (Sherman Antitrust Act of 1890) is the correct answer.
31) Option C (evidence of unfair business practices, and Microsoft was a monopoly) is the correct answer.
Thanks.
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