1. When OPEC reduces output to keep prices high, OPEC is acting as a: B. price t

Question

1. When OPEC reduces output to keep prices high, OPEC is acting as a:

B. price taker.

C. producer in a contestable market.

D. producer moving along a supply curve, cutting output as price falls.

2. In a monopolistically competitive market:

D. the demand for any firm's product is perfectly elastic.

3. Monopolistically competitive firms:

D. earn zero economic profits in both the short-run and the long-run.

4.The pizza market is divided as follows:

How would you describe its market structure?

D. Cartels.

5.Which industry is more highly concentrated: one with a Herfindahl index of 1,800 or one with a four-firm concentration ratio of 85 percent?

A. cartel.

B. price taker.

C. producer in a contestable market.

D. producer moving along a supply curve, cutting output as price falls.

2. In a monopolistically competitive market:

A. firms produce differentiated products. B. there are barriers to entry. C. firms produce homogeneous products.

D. the demand for any firm's product is perfectly elastic.

3. Monopolistically competitive firms:

A. can earn economic profits or losses in both the short-run and the long-run. B. can earn either profits or losses in the short-run, but earn zero economic profits in the long-run. C. earn economic profits in the short-run but zero economic profits in the long-run.

D. earn zero economic profits in both the short-run and the long-run.

4.The pizza market is divided as follows:

  Pizza Hut   20.6 %   Domino's   16.5   Little Caesars   6.2   Pizza Inn/Pantera's   1.5   Round Table   2.2   All others   53.0
Assume that each of the remaining firms controls 1% of the market.

How would you describe its market structure?

A. Oligopolistic. B. Perfectly competitive. C. Monopolistic.

D. Cartels.

5.Which industry is more highly concentrated: one with a Herfindahl index of 1,800 or one with a four-firm concentration ratio of 85 percent?

A. Both have the same concentration, just stated differently. B.The one with a Herfindahl index of 1,800. C.The one with a four-firm concentration ratio of 85 percent. D. It

Explanation / Answer

1. A. cartel.

2. A. firms produce differentiated products.

3. B. can earn either profits or losses in the short-run, but earn zero economic profits in the long-run.

4. C. Monopolistic.

5. C.The one with a four-firm concentration ratio of 85 percent.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.