question
Pure monopoly means:
answer
a single firm producing a product for which there are no close substitutes.
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Which of the following is correct?
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A purely competitive firm is a "price taker," while a monopolist is a "price maker."
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A pure monopolist is:
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a one-firm industry.
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In the short run, a monopolist's economic profits:
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may be positive or negative depending on market demand and cost
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There is some evidence to suggest that X-inefficiency is:
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more likely to occur in monopolistic firms than in competitive firms.
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Monopolistic competition means:
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many firms producing differentiated products.
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Under monopolistic competition entry to the industry is:
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more difficult than under pure competition but not nearly as difficult as under pure monopoly.
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The restaurant, legal assistance, and clothing industries are each illustrations of:
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monopolistic competition.
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In the short run a monopolistically competitive firm's economic profit:
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may be positive, zero, or negative.
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The term oligopoly indicates:
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a few firms producing either a differentiated or a homogeneous product.
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In an oligopolistic market:
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products may be standardized or differentiated.
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The automobile, household appliance, and automobile tire industries are all illustrations of:
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differentiated oligopoly.
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The copper, aluminum, cement, and industrial alcohol industries are examples of:
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homogeneous oligopoly.
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Which of the following is the best example of oligopoly?
answer
automobile manufacturing
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Homogeneous oligopoly exists where a small number of firms are:
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producing virtually identical products.
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Which of the following is a unique feature of oligopoly?
answer
mutual interdependence
question
Concentration ratios measure the:
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percentage of total sales accounted for by the four largest firms in the industry.
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If the four-firm concentration ratio for industry X is 80:
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the four largest firms account for 80 percent of total sales.
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An industry having a four-firm concentration ratio of 85 percent:
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is an oligopoly.
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OPEC provides an example of:
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an international cartel.
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The Clayton Act of 1914:
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outlawed price discrimination, tying contracts, intercorporate stockholding, and interlocking directorates that lessen competition.
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The Sherman Act was designed to:
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make monopoly and acts that restrain trade illegal.
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The function of investigating instances of fraudulent advertising has been assigned to the:
answer
Federal Trade Commission.
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Which of the following gave the Federal Trade Commission responsibility to protect the public against false and misleading advertising?
answer
Wheeler-Lea Act of 1938
question
The basic issue in the DuPont cellophane case was:
answer
defining the relevant market.
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