question
We would expect industry entry and exit to be relatively in which of the four market structures?
answer
Monopolistic and Perfect Competition
question
We would expect a homogeneous (standardized) product is less than the minimum ATC. You should :
answer
Close down because by producing, your losses will exceed your total fixed costs
question
The demand curve is a purely competitive industry is _____, while the demand curve to a single firm in that industry is _______
answer
downsloping, perfectly elastic
question
When a monopolistically competitive firm is in long-run equilibrium:
answer
Marginal revenue equals marginal cost and price equals average total cost
question
Game theory can be used to demonstrate that oligopolists:
answer
Can increase their profits through collusion
question
The kinked demand curve of an oligopolist is based on the assumption that :
answer
Competitors will follow a price cut but ignore a price increase
question
Product differentiation is a key characteristic of:
answer
monopolistically competitive markets only
question
Pure monopolists may obtain economic profits in the long run because:
answer
Of barriers to entry
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