The theory of contestable mark

The theory of contestable markets concludes that a.asmall number of firms in an industry is strong evidence that theywill perform in a non-competitive way b.even if the number ofsellers in an industry is small profits can be zero in the industryc.inefficient producers can survive in a contestable market d.afirm in a contestable market will sell at a price above marginalcost e.all of the above

The profit-maximizing oligopolist produces where a.priceequals marginal cost b.marginal revenue equals marginal costc.price is greater than average total cost d.a and b e.b andc

One of the benefits of a market being monopolisticcompetitive is a.production at the minimum point of the ATC curveb.the variety of differentiated products c.a larger output than ifit were perfectly competitive d.a lower price than if it wereperfectly competitive

Suppose an industry is made up of four firms, al withequal sales. The four-firm concentration ratio of that industry isa.0.125 b0.50 c.1.00 d.this cannot be determined without moreinformation

A monopolistic competitor faces a ___ demand curve andits price is ___ marginal revenue a.horizontal, equal tob.downward-sloping, equal to c.horizontal, greater thand.downward-sloping, greater than

Which of the following statements is false? A.themonopolistic competitor, like the perfectly competitive firm, isresource-allocative efficient b.the monopolistic competitorproduces that quality of output at which price equals marginal costc.the monopolistic competitor produces the quantity of output withthe lowest per-unit costs d.a,b and c

A monopolistic competitor that seeks to maximize profitsor minimize losses will produce the quantity of output at whicha.its per-unit costs are the lowest b.MR=MC and charge the highestpossible per-unit price for it c.MC=ATC and charge the highestpossible per-unit price for it d.P=MC and charge the highestpossible per-unit price for it e.none of the above

Which of the following is true? A.concentration ratiostake into account competition from substitute goods b.the four-firmconcentration ratio is likely to be larger than the eight-firmconcentration ratio c.there are assumed to be insufficient barriersto entry in the theory of oligopoly d.a designer label on a pair ofjeans is a way of differentiation one seller’s jeans from anotherseller’s jeans e.all of the above

Which of the following is an example of oligopoly marketin which the firms produce a homogeneous product a.aluminum b.soapc.breakfast cereals d.tires e.all of the above

Which of the following is true? A.one of the costs of a(single-price) monopolist is that it does not produce the quantityof output at which p=mc b.third-degree price discrimination issometimes referred to as discrimination among buyers c.a perfectlyprice-discriminating monopolist is resource-allocative efficientd.price discrimination occurs when the seller charges differentprices for the product it sells and the price differences do notreflect cost differences e.none of the above