question
If the XYZ Company can sell 4 units per week at $10 per unit and 5 units per week at $9 per unit, the marginal revenue of the fifth unit is $5
answer
True
question
Because of the ability to influence price, a pure monopolist can increase price and increase volume of sales simultaneously.
answer
False
question
In the long run monopolistically competitive firms make normal profits because they are forced to operate at the minimum point of their average total cost curve.
answer
False
question
The demand curve of a monopolistically competitive producer is less elastic than that of a purely competitive producer.
answer
True
question
The economic profits earned by monopolistically competitive sellers are zero in the long run.
answer
True
question
The monopolistically competitive seller maximizes profits by equating price and marginal cost.
answer
False
question
If three or four homogenous oligopolists collude, the resulting price and production outcomes will be similar to those of pure monopoly.
answer
True
question
Although individual purely competitive firms can influence the price of their product, these firms as a group cannot influence market price.
answer
False
question
In a purely competitive industry, competition center more on advertising and sales promotion than on price.
answer
False
question
Generally speaking, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude.
answer
True
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