In contestable markets large oligopolistic firms end up behaving like ?
A market is defined as perfectly contestable if ?
The kinked demand curve model of oligopoly assumes the elasticity of demand ?
In which of the following circumstances would a cartel be most likely to work ?
A price- and quantity-fixing agreement is known as?
An industry that has a relatively small number of firms that dominate the market is called ?
A form of industry structure characterized by a few firms, each large enough to influence market price is ?
Which of the following statements best describes the outcome under monopolistic competition ?
A firm in a monopolistically competitive industry ?
In monopolistic competition firms achieve some degree of market power ?
In contestable markets, large oligopolistic firms, end up behaving like ?
Form society’s point of view, society would be better off if a monopolist ?
Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
The slope of marginal revenue curve is ?
Economic profits are ?
A normal rate of profit ?
If firms can neither enter nor leaves an industry, the relevant time period is the ?
The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
If a firm has some degree of market power, then output price ?
A firm will shut down in the short run if ?
A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
The formula for average variable cost (AVC) is ?
A graph showing all the combinations capital and labor available for a given total cost is the ?
A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is _ and the marginal product of the third worker is _________?
Diminishing marginal return implies ?
The costs that depend on output in the short run are ?
Which statement is False ?
Which of the following statements is False ?
A major weakness of the kinked demand curve model of oligopoly is that ?
An oligopoly with a dominant price leader will produce a level of output ?
A group of firms that gets together to make price and output decisions is called ?
Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will and the total output produced will __________?
When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
Which of the following statements best describes the outcome under monopolistic competition ?
The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
Monopolistic competition differs from perfect competition primarily because ?
A market is defined as perfectly contestable if ?
An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
In a monopoly, marginal revenue is ?
The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?
In the long run ?
The short run, as economists use the phrase, is characterized by ?
Relative to a competitively organized industry a monopoly ?
When __ substitutes exist, a monopolist has ________ power to raise price?
If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?
Maximum profit can be shown on a diagram using ?
Marginal revenue is ?

Market power is ?

A. a firm’s ability to monopolies a market completely.
B. a firm’s ability to raise price without losing all demand for its product
C. a firm’s ability to sell any amount of output it desires at the market-determined price.
D. a firm’s ability to charge any price it likes

Correct Answer: B. a firm’s ability to raise price without losing all demand for its product ✔

Last Updated: June 18, 2019