Economics Mcqs

In which of the following circumstances would a cartel be most likely to work ?

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In which of the following circumstances would a cartel be most likely to work ?

A. The market for copper, where there are very few producers and the product is standardized.
B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic
C. The coffee market where the product is standardized and there are a large number of coffee growers.
D. The automobile industry, where there are few producers but there is great product differentiation.

Which of the following statements best describes the outcome under monopolistic competition ?

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Which of the following statements best describes the outcome under monopolistic competition ?

A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
B. It is efficient because entry is free and economic profits are eliminated in the long run.
C. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

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Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

A. maximized its total revenue
B. set price equal to its average cost
C. equated marginal revenue and marginal cost
D. maximized the difference between marginal revenue and marginal cost.