37. Oligopoly firms that produce only cement are less likely to collude than fir
ID: 1119528 • Letter: 3
Question
37. Oligopoly firms that produce only cement are less likely to collude than firms in a cell phone oligopoly A) True B) False 38. If monopolistically competitive firms are earning positive economic profits in the short run, then in the long run: A) firms will leave the industry B) the demand curves faced by existing firms will move to the right. C) economic profits will increase. D) economic profits will be reduced to zero. 39. A monopolistically competitive industry, such as corn snack chips, and a perfectly competitive industry, like wheat farming, are alike in that: A) firms in both types of industries produce identical products. firms in both types of industries produce similar but not identical products. C) B) barriers to entry in both industries are large. D) there are many firms in each industry. 40·The price for a firm under monopolistic competition is revenue. A) equal to marginal B) greater than marginal C) less than marginal D) greater than total 41. A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economic profits. Which of the following must be TRUE? A) ATC> P>MR -MC B) ATC P> MR-MC D) ATC> P> MR> MC. 42. The Sherman Antitrust Act: A) was aimed at preventing the establishment of more monopolies and was the beginning of antitrust policy B) introduced the HHI measure to industries. C) initially allowed firms to collude legally. D) allowed the establishment of trusts.Explanation / Answer
Q37
Answer
Option B
False
The cement is identical to the merger is possible and the cell phones differentiated so the merger is difficult.
Q38
Answer
Option D
In long run, the market firm's earn zeroes economic profit because of free entry and exit.
Q39
Answer
Option D
There are many firms in the market
Q40
Answer
Option B
The demand curve for the market is downward sloping so the price is above marginal revenue.
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