A. perfectly competitive firms
B. a cartel
C. a monopoly
D. monopolistically competitive firms.
Related Mcqs:
- In contestable markets large oligopolistic firms end up behaving like ?
A. monopolistically competitive firms
B. a cartel
C. perfectly competitive firms
D. a monopoly. - According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?
A. created stationary economies of scale
B. maintained the relationship between firms and their clients
C. replaced price as the important
D. limited the expansion of firms - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination - A market is defined as perfectly contestable if ?
A. entry to it is costly but exit from it is costless
B. entry to it and exit from it are both costless
C. entry to it and exit from it are both costly
D. entry to ti costless but exist from it is costly - A market is defined as perfectly contestable if ?
A. entry to it and exit from it are both costless
B. entry to it and exit from it are both costly
C. entry to it costless, but exit from it is costless
D. entry to it is costly, but exit from it is costless - As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
A. monopoly
B. a competitive market
C. monopolistic competition
D. a collusion solution - Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?
A. marginal revenue and then use the demand curve to determine the price consistent with this quantity
B. average total cost and then use the supply curve to determine the price consistent with this quantity
C. marginal revenue and then use the supply curve to determine the price consistent with this quantity
D. average total cost and then use the demand curve to determine the price consistent with this quantity - Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
A. at the efficient scale and charge a price equal to marginal cost
B. at the efficient scale and charge a price above marginal cost
C. With excess capacity and charge a price above marginal cost
D. With excess capacity and charge a price equal to marginal cost - When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output
B. more than the efficient level of output
C. so that consumer surplus is zero
D. the efficient level of output - In monopolistic competition of firms are making abnormal profit other firms will enter and ?
A. The marginal cost will shift outwards
B. the demand curve will shift inwards
C. The average cost will shift downwards
D. The average variable cost will increase
