An industry that has a relatively small number of firms that dominate the market is called ?

A. A colluding industry
B. A merged industry
C. A concentrated industry
D. A natural monopoly

A price- and quantity-fixing agreement is known as?

A. Price leadership
B. Price concentration
C. Collusion
D. Game theory,

Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

A. Maximized its total revenue
B. Set price equal to its average cost
C. Equated marginal revenue and marginal cost
D. Maximized the difference between marginal revenue and marginal cost.

Form society’s point of view, society would be better off if a monopolist ?

A. Produced less and charged a higher price
B. Produced more and charged a higher price
C. Produced more and charged a lower price
D. Produced less and charged a lower price.

In contestable markets, large oligopolistic firms, end up behaving like ?

A. Perfectly competitive firms
B. A cartel
C. A monopoly
D. Monopolistically competitive firms.

In monopolistic competition firms achieve some degree of market power ?

A. By producing differentiated products
B. Because of barriers to exit from the industry
C. By virtue of size alone
D. Because of barriers to entry into the industry

Economic profits are ?

A. The difference between total revenue and total costs.
B. Anything greater than the normal opportunity cost of investing
C. The opportunity costs of all inputs
D. A rate of profit that is just sufficient to keep owners and investors satisfied

The slope of marginal revenue curve is ?

A. Always equal to one.
B. Half as steep as the demand curve
C. The same as the slope of the demand curve
D. Twice as steep as the demand curve

The cosmetics industry is not considered by economists to be a good example of perfect competition because ?

A. There are many eu and government health controls on cosmetic products
B. There are a very large number of firms in the industry
C. Firms spend a large amount of money on advertising
D. Profit margins are very high for both producers and retailers

If firms can neither enter nor leaves an industry, the relevant time period is the ?

A. Immediate run
B. Intermediate run
C. Long run
D. Short run