11) A cartel a group of firms which agree to
A) : 1418027
11) A cartel is a group of firms which agree to
A) behave competitively.
B) raise the price of their products.
C) lower the price of their products.
D) increase the amount they produce.
E) cheat on each other.
12) Because an oligopoly has a small number of firms
A) each firm can act like a monopoly.
B) the firms may legally form a cartel.
C) the HHI for the industry is small.
D) the four-firm concentration ratio for the industry is small.
E) the firms are interdependent.
13) Complete the following sentence. A duopoly is
A) a market where three dominant firms collude to decide the profit-maximizing price.
B) a market where two firms compete for profit and market share.
C) the same as a monopoly.
D) not an oligopoly.
E) a market with two distinct products.
14) A duopoly occurs when ________.
A) there are only two producers of a particular good competing in the same market
B) there are two producers of two goods competing in an oligopoly market
C) there are numerous producers of two goods competing in a competitive market
D) the one producer of two goods sells the goods in a monopoly market
E) a competitive market produces two goods
Use the figure below to answer the following question.
In the figure, D is the demand curve for taxi rides in a town, and ATC is the average total cost curve of a taxi company.
15) Refer to Figure 15.1.1. In the scenario above, the market is:
A) A natural duopoly
B) A natural oligopoly with three firms
C) A natural monopoly
D) Monopolistically competitive
E) perfectly competitive
16) A monopolistically competitive firm is like an oligopolistic firm insofar as
A) both face perfectly elastic demand.
B) both can earn an economic profit in the long run.
C) both have MR curves that lie beneath their demand curves.
D) neither is protected by high barriers to entry.
E) both are price takers.
17) An oligopoly is a market structure in which there
A) are a few buyers but many sellers.
B) are no barriers to entry.
C) are many independent sellers.
D) are a few goods sold by many sellers.
E) is a temptation to collude.
18) The distinguishing features of oligopoly are ________ and ________ in the industry.
A) no barriers to entry; a small number of firms
B) barriers to entry; a large number of firms
C) no barriers to entry; a large number of firms
D) barriers to entry; one firm
E) barriers to entry; a small number of firms
19) Oligopoly is similar to
A) perfect competition because both market types produce identical goods.
B) perfect competition because both firms in both market types make zero economic profit in the long run.
C) monopoly because both market types have barriers to entry.
D) monopoly because both market types have a single firm.
E) monopolistic competition because firms in both markets face a perfectly elastic demand.
20) In an oligopoly market, the Herfindahl-Hirschman Index is usually
A) below 1,800.
C) above 1,800.
D) equal to 10,000.
E) between 100 and 1,000.