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9 Cards in this Set
- Front
- Back
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which would be the most characteristic of monopolistic competition
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a. collusion among firms
b. firms selling a homogeneous product c. a relatively large number of firms d. difficult entry into and exit from the industry |
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the corncern that monopolisticaly competitive firms express about product attributes, services to customers, or brand names are aspects of
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a. allocative efficiency in the industry
b. collusion in the industry c. product differentiation d. concentration ratios |
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in the short run, a typical monopolistically competitive firm will earn
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a. only a normal profit
b. only an economic profit c. only and economic or normal profit d. an economic or normal profit or suffer an economic loss |
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the firm's profit-maximizing price will be
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a. $9
b. $12 c. $15 d. $18 |
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the equilibrium output for this firm will be
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a. 50
b. 85 c. 115 d. 135 |
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industry A is composed of four large firms that hold market shares of 40, 30, 20, and 10. The Herfindahl index for this industry is
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a. 100
b. 1000 c. 3000 d. 4500 |
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if both firms collude to maximize joint profits, the total profits for the two firms will be
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a. $400,000
b. $800,000 c. $850,000 d. $950,000 |
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assume that Firm B adopts a low-price strategy while Firm A maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, Firm B will now
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a. lose $150,000 in profit and Firm A will gain $150,000 in profit
b. gain $100,000 in profit and Firm A will lose $150,000 in profit c. gain $150,000 in profit and Firm A will lose $100,000 in profit d. gain $525,000 in profit and Firm A will lose $275,000 in profit |
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if both firms operate independently and do not collude, the most likely profit is
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a. $300,000 for Firm A and $300,000 for Firm B
b. $525,000 for Firm A and $275,000 for Firm B c. $275,000 for Firm A and $525,000 for Firm B d. $245,000 for Firm A and $425,000 for Firm B |
