Question:

The larger the number of firms in an oligopoly, the ________ the price and the ________the output of the industry.

A.

lower, greater

B.

higher, lesser

C.

higher, greater

D.

lower, lesser

Answer» a. lower, greater

Question:

Monopolists are said to be allocatively inefficient because:

A.

they produce where mr > mc.

B.

at the profit-maximizing output price is greater than avc.

C.

they produce only the type of product they desire and do not consider the consumer.

D.

at the profit-maximizing output the marginal benefit to society of additional output is

Answer» d. at the profit-maximizing output the marginal benefit to society of additional output is

Question:

In the short run, the monopolist

A.

Breaks even

B.

Incurs loss

C.

Makes profit

D.

Any of the above

Answer» d. Any of the above