M04 Study Guide ECON101

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Posted on

March 14th, 2023

question

An oligopoly is characterized by:

answer

Either a homogeneous or differentiated product

question

A monopoly is characterized by:

answer

a unique product

question

A monopoly may _______________ economic profits and may _____________ economic loses in the long run.

answer

have, have not

question

A monopoly may _______________ economic profits and may _____________ economic loses in the short run.

answer

have, have

question

All firms earn an economic profit when:

answer

Price > ATC

question

All firms will establish their profit maximizing output where:

answer

MC = MR

question

Which of the following market structures is a price taker?

answer

Perfect Competition

question

Which of the following best illustrates a perfectly competitive market?

answer

soybeans

question

A firm operating in a perfectly competitive market is a price taker because:

answer

setting a price higher than the market price results in zero sales.

question

If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then

answer

it should produce where MR = MC

question

Which of the following describes the monopoly market structure?

answer

single firm that is a price marker

question

A monopolist can earn an economic profit only when:

answer

average total cost is less than price and the same is true for a perfectly competitive firm.

question

Under both perfect competition and monopoly, a firm:

answer

sets marginal cost equal to marginal revenue.

question

Which of the following is characteristic of a monopolistically competitive firm?

answer

the firm produces a differentiated product

question

Exit of existing firms will occur in a monopolistic competitive industry until:

answer

economic profit equals zero.

question

Because an oligopoly is characterized by

answer

few large sellers, each seller has some influence over the market price.

question

A(n) ____ can be used to demonstrate why a competitive oligopoly tends to result in a low-price strategy that does not maximize mutual profits.

answer

payoff matrix

1 of 17

question

An oligopoly is characterized by:

answer

Either a homogeneous or differentiated product

question

A monopoly is characterized by:

answer

a unique product

question

A monopoly may _______________ economic profits and may _____________ economic loses in the long run.

answer

have, have not

question

A monopoly may _______________ economic profits and may _____________ economic loses in the short run.

answer

have, have

question

All firms earn an economic profit when:

answer

Price > ATC

question

All firms will establish their profit maximizing output where:

answer

MC = MR

question

Which of the following market structures is a price taker?

answer

Perfect Competition

question

Which of the following best illustrates a perfectly competitive market?

answer

soybeans

question

A firm operating in a perfectly competitive market is a price taker because:

answer

setting a price higher than the market price results in zero sales.

question

If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then

answer

it should produce where MR = MC

question

Which of the following describes the monopoly market structure?

answer

single firm that is a price marker

question

A monopolist can earn an economic profit only when:

answer

average total cost is less than price and the same is true for a perfectly competitive firm.

question

Under both perfect competition and monopoly, a firm:

answer

sets marginal cost equal to marginal revenue.

question

Which of the following is characteristic of a monopolistically competitive firm?

answer

the firm produces a differentiated product

question

Exit of existing firms will occur in a monopolistic competitive industry until:

answer

economic profit equals zero.

question

Because an oligopoly is characterized by

answer

few large sellers, each seller has some influence over the market price.

question

A(n) ____ can be used to demonstrate why a competitive oligopoly tends to result in a low-price strategy that does not maximize mutual profits.

answer

payoff matrix

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