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ECON 203 Week 5 & 6 Merged For Quiz With Explained Answers 100% Correct Download To Score A
Typology: Exams
1 / 106
Monopolistic competitors in the food industry will often include a recyclable symbol on packaging used for their product as a means to
1 / 1 point a) be^ socially^ responsible. b) be^ environmentally^ responsible. c) be^ perceived^ more^ favorably. d) differentiate^ their^ product. Questio n 2
point Which of the following would be classified as a differentiated product produced by a monopolistic competitor? a) natural^ gas b) Channel^ No.^5
c) tap^ water d) electricity Questio n 3
point Perfect competition and monopoly stand at of the spectrum of competition.
If a perfectly competitive firm raises its price, the quantity demanded of its product .
a) opposite^ ends b) the^ low^ end c) the^ mid-way point d) the^ high^ end Chapter 10 monop_competion_oligopoly curves ion 4 1 / 1 point a) falls^ to^ zero b) falls^ below^ marginal^ cost c) diminishes^ temporarily^ in^ the^ short^ run d) stays^ the^ same
The perceived demand for a monopolistic competitor
Questio n 5
point a) is^ steep. disregards competitors. b)
A monopolistically competitive firm may earn abnormally high profits in the
c) is^ flat. d) takes^ competitors^ into^ account. Questio n 6
point If a monopoly or a monopolistic competitor raises their prices, the quantity demanded . a) stays^ the^ same b) will^ expand c) will^ decline^ in^ the^ short^ run d) will^ decline Chapter 10 costs ion 7 1 / 1 point
a) long^ term,^ but^ the^ process^ of^ entry^ will^ drive^ those^ profits^ to^ zero^ in^ the short run. b) long^ run,^ but^ after^ entry occurs,^ the^ short^ term^ perceived^ demand^ curve shifts to the right. c) short^ term,^ but^ the^ process^ of^ entry^ will^ drive^ those^ profits^ to^ zero^ in^ the long run. d) short run, but^ after^ entry occurs,^ the^ long^ term^ perceived^ demand^ curve shifts to the right. Questio 1 / 1
The first step to be undertaken by a profit-maximizing monopolistic competitor wanting to decide what price to charge is to
n 8 point a) determine^ what^ price^ to^ charge^ for^ the^ product b) determine^ total^ revenue,^ total^ cost,^ and^ profit c) determine average costs, total^ revenue,^ and^ profit d) select^ the^ profit^ maximizing^ quantity^ to^ produce Chapter 10 the social benefits ion 9 0 / 1 point A monopolistically competitive industry does not display in either the short-run, when firms are making , nor in the long-run, when firms are earning . a) productive and allocative efficiency; profits and losses; negative profits
b) allocative^ efficiency;^ profits^ and^ losses;^ negative^ profits c) productive^ and^ allocative^ efficiency;^ profits^ and^ losses;^ zero^ profits d) productive^ efficiency;^ profits^ and^ losses;^ zero^ profits Questio n 10
point If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is a) they will both improve their industrial position.
The desire of businesses to , so that they can raise the prices that they charge and earn higher profits, has been well-understood by economists for a long time.
b) they^ will^ both^ lose^ market^ share. c) they^ will^ simply^ neutralize one another's^ efforts. d) they^ will^ both^ increase^ market^ share. Chapter 10 prisoner's dilemma situation ion 11 0 / 1 point a) maximize^ profits^ for^ social^ benefit b) compete with each other c) avoid competing with each other
d) engage^ in^ free market^ activities Questio n 12
point If one firm operating in an oligopoly raises its price and other firms do not do so, a) the^ egos^ of^ all^ the^ top^ executives^ will^ eventually^ lead^ to^ cooperation^ at that higher price. b) the^ sales^ of^ the^ firm^ that^ increased^ its^ price^ will^ decline^ sharply.
The following table shows the demand curve and cost information for a firm that is a monopoly.
c) the firm^ with^ the increased price^ will^ have^ its^ higher^ profits sustained through cooperation. d) the^ sales^ of^ the^ firm^ with^ the^ higher^ price^ will^ decline^ slightly. Chapter 10 Problems maximize profits ion 13 1 / 1 point Pri c e Quant it y
$10 0 $ 0 $9 200 $1, 0 0 $8 400 $1, 0 0 $7 600 $2, 0 0
What quantity should they produce to maximize their profits?
a) 200 units
A monopolistic competitor has the following information about cost and demand.
b) 600 units c) 400 units d) 800 units Chapter 10 Problems_ firm's profits ion 14 1 / 1 point Quantit y Price ($) Total Reven ue ($) Margin al Reven u e ($) Total Cost ($) Margina l Cost ($) Avera ge Cost($ ) 0 25 0 25 30 — — 2 24 48 23 35 2.5 17.
MR=MC Profit TR-TC What will the firm’s profits equal in the short run? Regulations that permit a regulated firm to cover its costs and to make a normal level of profit are commonly referred to as
16 17 272 9 210 22.5 13. 18 16 288 7 260 25 14. 20 15 300 5 320 30 16
a) $ b) $ c) $ d) $ Chapter 11_monopoly_antitrust_policy ion 15 1 / 1 point
a) cost-plus^ regulation. b) regulatory^ capture. c) profit regulation.
d) price^ cap^ regulations. Questio n 16
point Practices that reduce competition without actual documented agreements between firms to raise price are commonly referred to as. a) regulated^ practices b) legal^ practices c) competitive^ practices d) restrictive practices Questio n 17
point
When the regulator sets a price that a firm cannot exceed over the next few years, the regulator is enforcing a) deregulation. regulatory capture rules. b) c) cost-plus^ regulation
d) price^ cap^ regulation. Chapter 11 antitrust law ion 18 0 / 1 point The main challenge for antitrust regulators is a) to promote the concept of a market-oriented economy. b) to^ determine^ when^ a merger^ may^ hinder^ competition. c) to^ facilitate^ privatization^ of^ government^ assets. d) to^ figure^ out^ how^ to^ best^ benefit^ consumers. Questio n 19
point If the largest four firms in an industry control less than half the market, their competitive concentration ratio a) would^ not^ be^ considered^ particularly^ low.
b) would^ not be^ considered^ particularly^ high c) would^ be^ considered to be^ especially high. would be considered to be especially low. d) Questio n 20
point
If the U.S. electricity and the telecommunications industry are deregulated, the challenge that will need to be met will involve
In the closing decades of the nineteenth century, many industries in the U.S. economy were dominated by a single firm that had most of the sales for the entire country. In many cases these large firms were. a) organized^ in^ the^ legal^ form of a^ trust b) as^ efficient^ and^ innovative^ as^ they^ could^ be c) using^ illegal^ practices^ to^ dominate^ the^ US^ economy d) able^ to^ provide^ consumers^ with^ the^ lowest^ price^ products Chapter 11 regulation ion 21 1 / 1 point a) injecting^ competition^ into industries^ where^ the^ arguments for deregulation are not obvious. b) combining^ competition^ where^ possible^ with^ regulation^ where necessary.
c) focusing^ on^ the^ grid^ of^ wires^ that^ bring^ electricity^ to^ all^ categories^ of consumers. d) plans for aiding the concealment of Enron-style antitrust activities. Questio n 22
point In the US, f has likely been the most influential with respect to the increased level of competition faced by many local retail businesses?
a) vast improvement in communications technologies b) development of the Internet c) global^ business-to^ business^ websites d) globalization^ and^ all^ of^ the^ above Questio n 23
point There have been two especially important shifts in how markets are defined in recent decades: one involves and the other involves. a) technology;^ globalization globalization; communication technologies b) c) communication^ technologies;^ the^ Internet
The information below sets out the estimated market shares for the cellular phone manufacturing market. Firm Market Share Nokia 36%
d) the^ Internet;^ technology Chapter 11 Problems four-firm concentration ratio ion 24 0 / 1 point
Fujitsu 3% Kyocera 3% LG 6% Motorola 16% Samsung 6% Sanyo 4% Siemens 7% Sony Ericsson11% Plus 8 more firms with 1% each Based on this information, the Herfindahl-Hirschman Index is
a) 2,216 b) 1,836 c) 1,800 d) 1,272 Chapter 11 Problems _monopoly_antitrust law ion 25 0 / 1 point