Question 1

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s).

Accepted Answer

The answer of 
-The figure above shows the market demand...

Question 2

-The figure above shows that ________ occurs at ________ units and that ________ firms should share the market.

Accepted Answer

The efficient scale occurs at 30 units, and 3 firms should share the market.

Question 3

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s).

Accepted Answer

The answer of 
-The figure above shows the market demand...

Question 4

Oligopoly is a market structure in which

Accepted Answer

Oligopoly is a market structure characterized by a small number of firms that dominate the market. These firms have a significant impact on the market and face limited competition from other firms. In an oligopolistic market, a small number of large firms compete with each other, each trying to gain an advantage in the market. The products or services may be similar or differentiated, but the key factor is that there are only a few dominant players in the market.

Question 5

The efficient scale of one firm is 20 units and the average total cost at the efficient scale is $30.The quantity demanded in the market as a whole at $30 is 40 units.This market is

Accepted Answer

Given that the efficient scale of production for a firm is 20 units and the total market demand at the price that corresponds to this efficient scale ($30) is 40 units, it implies that the market can sustainably support two firms operating at their efficient scale. This scenario is indicative of a natural duopoly, where the market conditions naturally limit the number of firms that can efficiently operate in the market to two.

Question 6

If an industry has an HHI of 2,500,the market structure is that of

Accepted Answer

An HHI (Herfindahl-Hirschman Index) of 2,500 indicates a moderately concentrated market, which is commonly found in an oligopoly market structure. In an oligopoly, there are typically only a few large companies or firms that dominate the industry and have significant control over prices and output levels. This differs from a monopoly, where there is only one dominant player, and perfect competition, where there are many small firms with no market power. Therefore, the best choice is C, an oligopoly.

Question 7

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

Accepted Answer

The answer of 
-The figure above shows the market demand...

Question 8

-The figure above shows a ________ where ________ firm(s)produce(s)________.

Accepted Answer

The answer of 
-The figure above shows a ________ where...

Question 9

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.

Accepted Answer

The lowest price at which a firm could stay in business in the long run is where the price equals the minimum of the ATC curve, indicating the lowest average total cost at which the firm can produce without making a loss. This ensures the firm covers all its costs, including opportunity costs, in the long run. The quantity demanded at this price is determined by the intersection of this price with the market demand curve.

Question 10

Collusion results when a group of firms
i.act separately to limit output,lower prices,and decrease economic profits.
ii.act together to limit output,raise prices,and increase economic profits.
iii.in the United States legally fix prices.

Accepted Answer

Collusion is an anticompetitive behavior where firms act together to limit output, raise prices, and increase economic profits. Therefore, the correct choice is ii only. Option i is incorrect because it describes firms acting individually, not colluding. Option iii is incorrect because fixing prices is illegal in the United States under antitrust laws.

Question 11

A cartel is a group of firms

Accepted Answer

A cartel is a group of firms that act together to limit output, raise price, and increase economic profit. They collude and agree to restrict production to raise prices and profits. This behavior is often illegal and violates antitrust laws.

Question 12

A market with only two firms is called a

Accepted Answer

A market with only two firms is called a duopoly.

Question 13

-In the figure above,________ firms will share the market and the ________.

Accepted Answer

The answer of 
-In the figure above,________ firms will share...

Question 14

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

Accepted Answer

The answer of 
-The figure above shows the market demand...

Question 15

The fact that firms in oligopoly are interdependent means that

Accepted Answer

The interdependence of firms in an oligopoly means that each firm's profits are affected by the actions of other firms in the market. This can lead to strategic behavior and competition, even when there are only a few firms in the market. Barriers to entry may exist, and goods may be either identical or differentiated, but those factors are not directly tied to the interdependent nature of oligopoly. The number of firms in the market may be limited, but that does not necessarily mean that no firm can influence price. Finally, the price in an oligopoly market may or may not be driven down to the monopoly level, depending on the specific circumstances of the market.

Question 16

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.

Accepted Answer

The lowest price at which a firm could stay in business in the long run is where the ATC curve is at its minimum, which corresponds to the lowest point on the ATC curve. This is because, in the long run, firms need to cover all their costs, including both variable and fixed costs, to stay in business. The quantity demanded at that price is determined by where this lowest point on the ATC curve intersects with the market demand curve.

Question 17

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

Accepted Answer

The answer of 
-The figure above shows the market demand...

Question 18

One way to identify oligopoly is to

Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a common tool used to identify oligopoly. It measures the market concentration by summing up the squared market shares of each firm in the industry. Higher HHI indicates higher concentration, and a score above 2500 is often used as an indicator of oligopoly.

Question 19

When a city licenses only 3 taxi firms to serve the market,the city has created a

Accepted Answer

When a city licenses only a few taxi firms to serve the market, it creates a legal oligopoly. This is because the firms have exclusive rights to operate in the market and there are barriers to entry for new firms. However, this is a legal form of oligopoly as it is regulated by the city government.

Question 20

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

Accepted Answer

The answer of 
-The figure above shows the market demand...

Quiz 18: Oligopoly

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s) .

-The figure above shows that occurs at units and that firms should share the market.

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s) .

Oligopoly is a market structure in which

The efficient scale of one firm is 20 units and the average total cost at the efficient scale is $30.The quantity demanded in the market as a whole at $30 is 40 units.This market is

If an industry has an HHI of 2,500,the market structure is that of

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

-The figure above shows a where firm(s) produce(s) .

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is per unit and the quantity demanded in the market at that price is units per hour.

Collusion results when a group of firms i.act separately to limit output,lower prices,and decrease economic profits. ii.act together to limit output,raise prices,and increase economic profits. iii.in the United States legally fix prices.

A cartel is a group of firms

A market with only two firms is called a

-In the figure above, firms will share the market and the .

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

The fact that firms in oligopoly are interdependent means that

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is per unit and the quantity demanded in the market at that price is units per hour.

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

One way to identify oligopoly is to

When a city licenses only 3 taxi firms to serve the market,the city has created a

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

Quiz 18: Oligopoly

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s) .

-The figure above shows that ________ occurs at ________ units and that ________ firms should share the market.

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,economies of scale limit the market to ________ firm(s) .

Oligopoly is a market structure in which

The efficient scale of one firm is 20 units and the average total cost at the efficient scale is $30.The quantity demanded in the market as a whole at $30 is 40 units.This market is

If an industry has an HHI of 2,500,the market structure is that of

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

-The figure above shows a ________ where ________ firm(s) produce(s) ________.

Collusion results when a group of firms i.act separately to limit output,lower prices,and decrease economic profits. ii.act together to limit output,raise prices,and increase economic profits. iii.in the United States legally fix prices.

A cartel is a group of firms

A market with only two firms is called a

-In the figure above,________ firms will share the market and the ________.

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the figure shows a ________ can profitably operate.

The fact that firms in oligopoly are interdependent means that

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

One way to identify oligopoly is to

When a city licenses only 3 taxi firms to serve the market,the city has created a

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the efficient scale for one firm is ________ units per hour.

-The figure above shows that occurs at units and that firms should share the market.

-The figure above shows a where firm(s) produce(s) .

-In the figure above, firms will share the market and the .