ECO561 ECO/561 Week 3 Quiz (23/23)

ECO561 ECO/561 Week 3 Quiz (23/23)

1. A purely- or perfectly-competitive firm would be characterized by which of the following?2. For a purely-competitive firm, price must be3. What will excessive or economic profits induce for a firm in any industry structure?4. A pure-monopoly firms demand curve is also the market demand curve. This kind of firm may successfully engage in price discrimination to increase its total profit if it5. Oligopolies are characterized by a small number of firms where the top three firms hold the majority of the market. If in an oligopoly market, firm A is almost twice as big as firm B and firm C then6. In a monopolistic competition industry, if one firm appreciably increased its price from the existing equilibrium price, which of the following outcomes would most likely ensue?7. Which factor characterizes the competitive relationship between firms in an oligopoly market structure?8. Unregulated (natural) monopolies maintain their status through a variety of measures. Whether any particular measure can effectively constrain new firms from entering the market depends on9. Regulated monopolies are empowered by public authority for which specific reason?10. Using a significantly greater economy of scalewith attendant lower, long-run average total coststo restrict the market entry of new competitors11. In technology-intensive oligopoliescharacterized by dynamically evolving product designrestricting the entry of additional firms is12. Whether the market structure is monopolistic or oligopolistic, a firm may increase consumer demand for its product as an overall portion of market share if13. One difference between firms already established in a monopolistic competition industry and those attempting to enter it is that14. An average firm in an industry characterized by a homogeneous product, relatively low barriers to entry, and a low concentration ratio15. A monopolistic firm may operate in a relatively mature market with little likelihood for significant change in technology or process efficiencies. To maximize its profits, such a firm might16. Production differentiation can effectively be achieved by17. While mass retail industries have one or several dominant producers, smaller firms have a limited set of nonpricing options. The most feasible of these include18. In monopolistic competition industries, effective product differentiation is illustrated by19. Differentiation strategies vary in degree of effectiveness from one type of market structure to another. For firms other than perfect competition20. If a firms industry devolved from a monopolistic competition into an oligopolistic structure, the firm would discover that21. A firm can increase both profit and per-unit profit margin by lowering production costs. To make this a long-term outcome, the firm should22. A firms cost-reduction strategies may span multiple stages, from acquisition of production input factors to product service and maintenance. When seeking to lower cost in the short term, firms should23. Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by


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