Multiple choice

Question1

The basis for monopolistic competition is:

 A. product differentiation.

 B. price.

 C. economies of scale.

 D. reaching a break-even point.

Question 2  

__________ is (are) legal in the United States.

 A. Convert collusion

 B. Cut throat competition

 C. Cartels

 D. Price fixing

Question 3  

A Herfindahl-Hirschman Index of 10,000 would mean there is (are) how many firm(s) in the industry?

 A. 1

 B. 10

 C. 100

 D. 1000

Question 4  

The least competitive industry would be one that has:

 A. price leadership.

 B. covert collusion.

 C. overt collusion.

 D. a cartel.