21.) Which statement is the most accurate? A When we talk about big business in

ID: 1164947 • Letter: 2

Question

21.) Which statement is the most accurate?

A When we talk about big business in the U.S., we're talking about oligopoly.

B All oligopolists are very large firms.

C Oligopolists produce at the minimum points of their average total cost curves.

D It is impossible to lose money under oligopoly.

22.) Which statement is true?

A The higher the concentration ratio, the higher the degree of oligopolization.

B The lower the concentration ratio, the higher the degree of oligopolization.

C The concentration ratio remains constant as the degree of oligopolization rises.

D There is no relationship between the concentration ratio and the degree of

oligopolization.

23.) The kinked demand curve depicts

A cut-throat competition.

B cartels.

C collusive oligopoly.

D price leadership.

24.) Which statement is false?

A The kinked demand curve represents oligopoly with collusion.

B The kinked demand curve is associated with sticky prices.

C Administered prices occur more frequently under oligopoly than under other

forms of competition.

D None of these statements are false.

Ans

1 A is right.

2 A is right. They are directly related

3 cut throat competition. Hence they keep price fixed at some range as they engage in non price cut throat competition

4 A is wrong. It represents non collusive oligopoly

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