A+ Answers of the following Questions

Question 1         
Which is the least competitive?
A. Overt collusion
B. Covert collusion
C. Price leadership
D. All are equally competitive

Question 2         
Which statement is true?
A. Most firms in the United States are monopolistic competitors.
B. Most firms in the United States are perfect competitors.
C. Most consumers would prefer lower prices and less product differentiation.
D. The monopolistic competitor always makes a profit in the short run.

Question 3         
__________ is (are) legal in the United States.
A. Convert collusion
B. Cut throat competition
C. Cartels
D. Price fixing

Question 1         
The least competitive industry would be one that has:
A. price leadership.
B. covert collusion.
C. overt collusion.
D. a cartel.

Question 2         
Which statement is true?
A. The monopolistic competitor always makes a profit in the short run.
B. The monopolistic competitor operates at peak efficiency.
C. Product differentiation takes place in the minds of the buyers.
D. Most consumers would prefer lower prices and less product differentiation.

Question 3         
Monopolistic competition differs from perfect competition only with respect to:
A. the number of firms in the industry.
B. product differentiation.
C. barriers to entry.

D. economies of scale.

Question 1         
The conventional merger is the __________ merger.
A. horizontal
B. vertical
C. conglomerate
D. diversifying

Question 2         
If the price that a perfect competitor received for his or her final product doubled, the firm's MRP schedule would:
A. rise.
B. fall.
C. double at each price.
D. stay about the same.

Question 3         
You can find the MRP by multiplying marginal physical product by price for:
A. both the perfect competitor and the imperfect competitor.
B. neither the perfect competitor nor the imperfect competitor.
C. only the perfect competitor.
D. only the imperfect competitor.

Question 1         
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 1         
In the long run in monopolistic competition:
A. most firms are making a profit.
B. the absence of entry barriers ensures that there are no profits.
C. economies of scale ensure that there are no profits.
D. most firms are losing money.

Question 2         
Which statement is true?
A. Most firms in the United States are monopolistic competitors.
B. Most firms in the United States are perfect competitors.
C. Most consumers would prefer lower prices and less product differentiation.
D. The monopolistic competitor always makes a profit in the short run.

Question 3         
The closer the industry concentration ratio is to 100, the more likely it is that:
A. there are a reasonably large number of medium-sized firms.
B. this is an industry approaching perfect competition.
C. there is a small number of large firms.
D. price competition is being practiced.