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9 Cards in this Set

  • Front
  • Back
which would be the most characteristic of monopolistic competition
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
the corncern that monopolisticaly competitive firms express about product attributes, services to customers, or brand names are aspects of
a. allocative efficiency in the industry
b. collusion in the industry
c. product differentiation
d. concentration ratios
in the short run, a typical monopolistically competitive firm will earn
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
the firm's profit-maximizing price will be
a. $9
b. $12
c. $15
d. $18
the equilibrium output for this firm will be
a. 50
b. 85
c. 115
d. 135
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
a. 100
b. 1000
c. 3000
d. 4500
if both firms collude to maximize joint profits, the total profits for the two firms will be
a. $400,000
b. $800,000
c. $850,000
d. $950,000
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
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
if both firms operate independently and do not collude, the most likely profit is
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