A. The market for copper, where there are very few producers and the product is standardized.
B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic
C. The coffee market where the product is standardized and there are a large number of coffee growers.
D. The automobile industry, where there are few producers but there is great product differentiation.
Related Mcqs:
- Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is ___________ the price equals __________ and profits total __________?
A. 2 million barrels per day, $100, $60 million
B. 4 million barrels per day, $80, $160 million
C. 6 million barrels per day, $60, $60 million
D. 8 million barrels per day, $40, $20 million - The term Cartel refers to ?
A. A combination of firms for business purposes
B. An official agreement between governments at war, especially for exchange of prisoners
C. Unity of parties, factions or nations in a common cause
D. All of the above - To be considered a a good candidate for an export cartel, a commodity should ?
A. be a manufactured goods
B. be a primary product
C. have high price elasticity of supply
D. have a low price elasticity of demand - The OPEC oil cartel ?
A. has shown that is easy to achieve cooperation among cartel members
B. was successful in raising oil prices in the 1970s but was disbanded in the 1980s
C. has shown greater success in realizing profits during periods of global recession
D. has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities - To be considered a good candidate for export cartel, a commodity should ?
A. be a manufactured good
B. be a primary product
C. have a low price elasticity of supply
D. have a high price elasticity of demand - The policy cartel on debt reduction refers to the_______________?
A. screening of debtors based on their regional location
B. World Bank requiring LDCs seconded by a DC to get loan reduction
C. loan denial to crisis-stricken highly indebted countries
D. None of the above - If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?
A. the same as if it were served by competitive firms.
B. efficient because cooperation improves efficiency
C. the same as if it were served by a monopoly.
D. known as a Nash equilibrium - In a cartel member firms may be given a fixed amount to produce. This is called a ?
A. Limit
B. Factor
C. Quota
D. Quotient - In a cartel ?
A. Firms compete against each other
B. Price wars are common
C. Firms use price to win market share from competitors
D. Firms collude - Which of the following government policies is least likely to increase likely to increase growth in Africa ?
A. increase expenditure on public education
B. eliminate civil war
C. All of these answers would increase growth
D. increase restrictions on the importing of American tractors and electronics
