Need help with a few questions please! 1. In the short run a monopolistic compet
ID: 1100146 • Letter: N
Question
Need help with a few questions please!
1. In the short run a monopolistic competitive firm will?
a. select the rate of output where marginal revenue eauals marginal cost
b. not advertise because the effects will not be realized until long gone.
c. make a profit
d. select the rate of output where price equals marginal cost
2. In the long run monoplolistic competitive firms...
a. make zero economic profits
b. can make either postive economic profits or zero economic profits, and always make positive accounting profits
c. make positive economic profits
d. make zero accounting profits
3. One major difference between oligopoly and perfect competitiion is that
a. oligopolistic firms act independently while competitive firms act interdependently
b. oligopolistic firms act interdependently while competitive firms operate indenependently
c. there is no major difference in the two types of firms since they both act interdependently
d. there is no major difference in the two firms since they both act independently.
4. which of the following is a charecteristic of an oligopoly?
a. no market power
b. a single seller
c. no barriers to entry
d. strategic interdependence
5. which of the following is not of the conditions that make it more likely that firms will be able to coordinate their efforts to restrain output and detect cheating?
a. there is little variation in prices
b. firms in the industry produce nearly identical products
c. market demand tends to be volatile
d. a small number of firms in the industry
6. a network effect exits when
a. the willingness to purchase a good depends on how many ther have purchased it
b. there are many firms in the market
c. market products are connected to each other
d. firms are strategically interdependent
part b
positive market feedback means that
a. a good loses popularity because other consumers have no chosen to buy it
b a good comes into favor because other consumers do not chose to buy it
c. a good loses popularity because other consumers have chosen to buy it
d. a good comes into favor because other consumers have chosen to buy it
6. which of the following is an example of social regulation
a. legislation against deceptive business practices in a specific industry
b. rate regulation of natural monopolies
c. FAA supervision of the airline industry
d. clean water regulations
7. Market solutions to the lemons problem entail
a. product certification
b. industry standards
c. product warranties
d. all of the above
8. which of the following is an explanation of the share-the-gains, share-the-pains theory?
a, people who have been in an industry are most likely to be asked to be regulators of the industry
b.when products have too many warning labels, consumers may not read any of them
c. in some markets, sellers have more information about products then buyers
d. regulators who are interested in keeping their jobs must please both the industry and the consumers
9. which of the following is a provision of the sherman act?
a. outlaws predatory prcing and deceptive business practicvies
b. forbids restraint of trade and attempts to monoplolize markets
c. forbids price discriminiation that substantially reduces competition
d. forbids specific practicies that restrain trade, exclusive dealerships, and some corportate stock ownership.
10. which of the following is an example of versioning.
a. a computer operating system is sold with a built in internet browser
b. a software product comes in two types, standard and professional (with more features)
c. a copier company requires buyes to purchase toner and paper from the company or the warranty is void
d. a company cuts proices belows costs in an attempt to drive other firms out of the market
part b
the supreme court has generally considered versioning to be
a. illeagal
b legal
Thanks!!!
Explanation / Answer
1) a.select the rate of output where marginal revenue equals marginal cost.
2) a.make zero economic profits.
3) b. Oligopolistic firms act interdependently while competitive firms operate independently.
4) a. no market power
5) c. market demand tends to be volatile
6) part 1: a. the willingness to purchase a good depends on how many ther have purchased it
part 2: d. a good comes into favor because other consumers have chosen to buy it
6)a. legislation against deceptive business practices in a specific industry
7)d. all of the above
8)d. regulators who are interested in keeping their jobs must please both the industry and the consumers
9)b. forbids restraint of trade and attempts to monoplolize markets
10) c. a copier company requires buyes to purchase toner and paper from the company or the warranty is void
10) a. illeagal