1. A herfindahl-Hirshman Index of 10,000 would mean there is (are) firm(s) in th

ID: 1101128 • Letter: 1

Question

1. A herfindahl-Hirshman Index of 10,000 would mean there is (are) firm(s) in the industry

A. 1

B. 10

C. 100

D. 1,000

E. 10,000

2. Which statement is true?

A. most oligopolies in the United States take form of a cartel

B. Covert collusion has probably never taken place among American oligopolists

C.The cartel and the cut throat competitor are on opposite ends of the competitive spectrum

D. none is true.

3. the greater are the barriers to entry into an industry

A. the more elastic will be the deman curves for existing firms

B. the more likely that existing firms will enjoy large profits in the long run

C. the lower will be short-run profits

D. the lower will be the average cost curves of existing firms

4. The demand curve facing an oligopoly will be less elastic

A. the larger its share of the market and the more differentiated the product

B. The smaller its share of the market and the more differentiated the product

C. the larger its share of the market and the less differentiated the product

D. the smaller its share of the market and the less differentiated the product.

1) A. 1

It is a monoply

2)C.The cartel and the cut throat competitor are on opposite ends of the competitive spectrum

3) B. the more likely that existing firms will enjoy large profits in the long run

4) A. the larger its share of the market and the more differentiated the product

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