02 Jun Question Quiz 2 1) Oligopoly is a market:
Question
Quiz 2
1) Oligopoly is a market:
A) with one firm and many different products.
B) with many firms and a homogeneous product.
C) with a few firms and the actions of one firm have a large impact on the others.
D) with a few firms and the actions of one firm have a small impact on the others.
Table 12 .1
2) Refer to Table 12.1. The four-firm concentration ratio of the cigarette industry is equal to:
A) 48%.
B) 54%.
C) 71%.
D) 81%.
3) Refer to Table 12.1. If Firms L and M were to merge, the four-firm concentration
ratio would:
A) rise to 71%.
B) fall to 82%.
C) fall to 40%.
D) rise to 82%.
4) If the five-firm concentration ratio in an oligopolistic industry is 100 percent and each firm has an equal share of the market, the Herfindahl-Hirschman Index is:
A) 10,000.
B) 2,000.
C) 2,500.
D) 400.
5) The kinked demand curve is relatively ________ for prices higher than the current price, and is relatively ________ for prices lower than the current price.
A) steep; steep
B) flat; steep
C) steep; flat
D) flat; flat
6) Natural monopoly is characterized by:
A) decreasing average total cost because there is only one firm.
B) decreasing average total cost because a unique product is being produced.
C) decreasing average total cost because there are economies of scale.
D) increasing average total cost because there are barriers to entry.
7) Refer to Figure 13.1. The type of firm pictured is a:
A) patent monopoly.
B) natural monopoly.
C) strategic resource monopoly.
D) government franchise monopoly.
8) Refer to Figure 13.1. If the cable company depicted was free to sell to any number
of subscribers it desires and set any price, it would sell to ________ subscribers at a
price of ________.
A) 800; $15
B) 1,000; $16
C) 2,200 $13
D) 2,500; $12
9) A central issue in the government’s lawsuit against Microsoft involved the integration of Microsoft’s internet browser into its operating system, thus requiring consumers to purchase both of them together rather than separately. This practice is known as:
A) predatory pricing.
B) price fixing.
C) collusion.
D) tie-in sales.
10) Which of the following laws prohibits predatory pricing?
A) the Sherman Act
B) the Robinson-Patman Act
C) the Clayton Act
D) the Federal Trade Commission Act
11) You want to purchase a new car. You have gone to 3 dealerships that sell the type of car you want. The price of the car is different at each of the dealerships. You have estimated that if you go to another dealership, the marginal amount you may save will be $250, but the marginal cost of going to the dealership would be $350. Which of the
following statements is accurate?
A) You should go to the next dealership, as you would be able to save an additional $250.
B) In order to determine whether or not you should go to the next dealership, you would need to know the total costs and total benefits of this action.
C) You should not go to the next dealership because the marginal cost of this action exceeds the marginal benefit.
D) You should continue going to dealerships as long as the marginal benefit of additional search is positive.
12) Because of asymmetric information, a seller of a lemon used car earns:
A) more profit than a seller of a plum used car.
B) less profit than a seller of a plum used car.
C) the same profit as a seller of a plum used car.
D) less revenue than a seller of a plum used car.
13) In the market for automobile insurance, asymmetric information occurs when:
A) insured drivers drive more safely than uninsured drivers.
B) insured drivers drive more recklessly than uninsured drivers.
C) drivers with greater risk purchase more automobile insurance.
D) automobile insurance is universal.
14) Refer to Figure 14.1. If the price of insurance is $5000, then
A) 50% of the consumers will be high-cost.
B) 25% of the consumers will be low-cost.
C) 75% of the consumers will be low-cost.
D) 50% of the consumers will be low-cost.
15) Refer to Figure 14.1. If the insurance company in this market becomes pessimistic and assumes that all buyers will be high-cost consumers, the equilibrium will be at:
A) point a.
B) point b.
C) point c.
D) none of these.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.