11 Which of following is an example of a cartel? A.)automotive industry B.)healt

Question

11
Which of following is an example of a cartel?
A.)automotive industry
B.)health care industry
C.)airline industry
D.)OPEC
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12
Perfectly competitive market structures have an incentive to enter or exit the market in the long run
True
False
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14
When firms set diffrent prices for the same goods or services this is an example of price DISCRIMINATION?
True
False
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15
For substitute goods is the cross price elasticity is:
A.) A positive value
B.) equal to one
C.) a negative value
D.) not enough information is given

16
A perfectly competitive market structure faces:
A.) A price floor
B.) market shortage
C.) A price ceiling
D.) market surplus

17
Oligoplistic market structures do not engage in game theory?
True
False

18
A perfectly competitive market structure and a monopolistic market structure are diffrent in terms of:
A.) Profit maximization
B.) Size of the firm
C.) Demand curve
D.) Efficiency

19
How does a monopolistic competitive market structure differ froma perfectly competitive market structure
A.) A monopolstic market structure is a price taker
B.) A monopolistic competitive market structure has many sellers and buyers
C.) A monopolistic competitive market structure faces a downward sloping demand curve and differentiated products or services
D.) A monopolistic competitive market structure and a perfectly competitive market structure maximize profits diffrently

20
All of teh following are characteristics of a perfectly competitive market structure except:
A.) Goods and services are differentiated
B.) All firms are price takers
C.) Little to no barriers to entry
D.) Similar vendors

21
Goods and services thatare essential to ones well being and daily life, the elasticity of demand would be:
A.) Positive
B.) Elastic
C.) negative
D.) inelastic

22
An oligopololistic market structure faces a(n):
A.) Downward sloping demand curve
B.) Upward sloping demand curve
C.) Kinked demand curve
D.) Inelastic demand curve

23
High barries to entry is at highest level, marginal utility is:
A.) Equal to zero
B.) Falling
C.) Equal to one
D.) Rising

24
Total surplus is equal to:
A.) Total surplus minus producer suplus
B.) Producer surplus minus consumer surplus
C.) Consumer surplus plus producer surplus
D.) Total surplus minus consumer surplus

25
What is the cause of scarcity?
A.) OPEC limiting the supply of oil
B.) Based on consumers who have unlimited wants
C.) Firms that employ first degree price discrimination
D.) based on consumers who have limited wants

Explanation / Answer

11. OPEC is an example of a cartel . Because cartel is a group of firms that gets together to make output and price decisons and OPEC is an example of international cartel. Hence, option(D) is correct.

12. TRUE perfectly competitive market structures have an incentive to enter or exit the market in the long run.

14. TRUE when firms set different prices for the same goods or services is an example of Price discrimination.

15. For substitutes , the cross price elasticity is positive because when the price of substiute good increase then , the quantity of good increases.Hence, option(A) is correct.

17. FALSE because oligopoly market structures engage in game theory.

18. A perfectly competitive market structure and monopolistic market structure are different in terms of size of the firm. Under perfect competition , there are large number of firms and Under monopolistic competition firms are limited. Hence, option(B) is correct.

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