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Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

A. decrease; decrease
B. increase; decrease
C. decrease; increase
D. increase; increase

Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

A. monopolistically competitive
B. oligopolistic
C. perfectly competitive
D. indeterminate from this information

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?

A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost

The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?

A. marginal costs
B. fixed costs
C. variable costs
D. advertising costs

A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

Monopolistic competition differs from perfect competition primarily because ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Monopolistic competition differs from perfect competition primarily because ?

A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products

Monopolistic competition differs from perfect competition primarily because ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

A. a fixed cost monopoly
B. a natural monopoly
C. a government franchise monopoly
D. a economies of scale monopoly

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?

A. approximately one-half
B. smaller than
C. larger than
D. approximately equal to

The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
If the ABC Tyg Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?

A. normal profit is zero
B. total costs exceed total revenue
C. total costs exceed normal profit
D. the firm is earning are economic profit

If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly