If the economies of scale are so large that only one firm can survive in the industry, then that industry is called a(n): O A. oligopoly. O B. perfect competitor. O C. natural monopoly. O D. monopoly.
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- Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize profit by producing the quantity at which marginal revenue equals marginal cost, set the price higher than the marginal cost, and break even in long run equilibrium. Which one of the following market structures most likely exists for Good A? O a. Monopoly. O b. Perfectly competition. O c. Monopolistic competition. O d. Oligopoly.If it is not profitable for more than a single firm to be in an industry, we have an example of Select one: O a. monopoly due to ownership of key resources. O b. monopoly due to large capital requirements. O c. monopoly due to economies of scale. O d. a cartel situation.If market X was deemed to be an oligopoly, then what must be true? O The price is between the monopoly price and the competitive price. O The price is set at the market equilibrium. Price is set equal to marginal cost. Price equals ATC in long run equilibrium.
- Air Canada and WestJet recently cut their prices for flights between Toronto and Edmonton to $199. In response, Porter Airlines cut its price from $239 to $199 for flights between Toronto and Edmonton in order to remain competitive. Based on this example, what degree of competition exists in the airline industry? Select one: O a. monopolistic competition O b. oligopoly O C. perfect competition O d. not enough information to answer O e. Monopoly BRefer to the figure at right. Two firms operating in the same market must choose between a collude price and a cheat price. Firm A's profit is listed before the comma, B's outcome after the comma. If each firm tries to choose a price that is best for it, regardless of the other firm's price, which of these statements is correct? O A. Both firms should charge a cheat price. OB. Firm A should charge the collude price; Firm B should charge a cheat price. C. D. Both firms should charge a collude price. Firm A should charge a cheat price; Firm B should charge a collude price. Cheat Price Firm A Firm B Cheat Price Collude Price Collude Price 18, 18 6,30 30,6 24, 24Generally, the food and beverage industry can be classified as an example of a monopolistic competition market. Thus, in the long-run, a firm in monopolistic competition normally produces at an output level where the; a. P = ATC and MR > MC. O b. P> ATC and MR > MC. O c. P> ATC and MR = MC. O d. P = ATC and MR = MC.
- Monopolistic competition has which advantage compared to a monopoly? O A. It increases the selling price of a business's products. O B. It gives companies access to more start-up capital. O C. It allows more companies to compete in an industry. O D. It takes greater advantage of economies of scale.In which of the following market structures do you find barriers to entry? O A. a perfectly competitive market. B. Both A and B are correct. O C. a monopoly. O D.a monopolistic competition.How does a commitment to match any price cuts by other firms work to limit price competition in an oligopoly? Select one: O a. Firms that cut price get no benefit in increased market share. O b. Demand decreases as consumers anticipate a price war in the future. Oc. Government regulators step in to avoid a ruinous price war. O d. Demand increases as consumers look more favorably on this industry and its products.
- The theory of monopolistic competition explains economic behaviour in industries in which there are O A. a few small firms, each with some market power. O B. many small firms, each with some market power. O C. many small firms, each with no market power. O D. a few small firms, each with no market power. O E. None of the above.There are thousands of broadband internet providers in the country, while in a particular city the only way you can get it is through the phone, the cable company, and through DIRECTV. The best model to analyze this market is O monopoly. O monopolistic competition O oligopoly. O perfect competition.Borough Market has many food shops that sell different types of cooked foods and drinks. It is relatively easy to open up a shop in the market and the sellers set different prices for their products ranging from £8 to £15. Based on this information, the food shops in the Borough market are in which kind of market structure? O Monopolistic Competition O Perfect Competition O Monopoly O Oligopoly