Question 1

Which statement about oligopolies is true?

Accepted Answer

A)  Most oligopolies in the U.S.engage in outright collusion.
B)  Most oligopolies operate at the minimum point of their ATC curves.
C)  Most of our GDP is produced by oligopolies.
D)  Collusion is illegal in the U.S.and does not exist.

Question 2

Use the following Table to answer the question :

-Given the information in the table below, calculate (a) the concentration ratio; and (b) the Herfindahl-Hirschman index.

Accepted Answer

(a) 26 + 2...

Question 3

An industry with a Herfindahl-Hirschman index of 1,000 would have ____ firm(s) .

Accepted Answer

A)  1
B)  10
C)  100
D)  1,000 B

Question 4

Use the following Table to answer the question :

-If the firm were a perfect competitor in the long run, what price would it charge?

Accepted Answer

The answer of Use the following Table to answer the...

Question 5

The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is

Accepted Answer

A)  monopoly.
B)  perfect competition.
C)  oligopoly.
D)  monopolistic competition.

Question 6

Which statement is true?

Accepted Answer

A)  Industry X has a higher Herfindahl-Hirschman Index than Industry Y.
B)  Industry Y has a higher Herfindahl-Hirschman Index than Industry Z.
C)  Industry Z has a higher Herfindahl-Hirschman Index than Industry X.
D)  Industries X, Y, and Z have the same Herfindahl-Hirschman Index.

Question 7

Use the following Figure to answer the question :

-If the firm were a perfect competitor in the long run, how much would its output be?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 8

The least competitive form of oligopoly would be a __________.

Accepted Answer

The answer of The least competitive form of oligopoly would...

Question 9

Which statement is true?

Accepted Answer

A)  Most oligopolies have only a few firms.
B)  The U.S.auto industry has a concentration ratio of 50 percent.
C)  Administered prices are most likely to occur under monopoly.
D)  In the U.S.today collusion is illegal but nevertheless still exists.

Question 10

Use the following Table to answer the question :

-Which statement is true?

Accepted Answer

A)  Industry X has a Herfindahl-Hirschman Index of 2400.
B)  Industry X has an H-H-I of 100.
C)  Industry X has an H-H-I of 80.
D)  Industry X has an H-H-I of 1,000. A

Question 11

___________ prices are set by large corporations for relatively long periods of time.

Accepted Answer

The answer of ___________ prices are set by large corporations...

Question 12

A low concentration ratio would most likely indicate

Accepted Answer

A)  a low degree of oligopolization.
B)  that the industry measured is a monopoly.
C)  that the industry measured is a perfect competitor.
D)  None of the choices are true.

Question 13

Which of the following represents an illegal control of prices?

Accepted Answer

A)  Colluding
B)  Following the leader without explicit agreements to do so
C)  Following the price determined by an analysis of supply and demand
D)  Accepting a government mandated price without contesting it A

Question 14

Which statement is true?

Accepted Answer

A)  Collusion is most likely in industries with high concentration ratios.
B)  Collusion is most likely in industries with low concentration ratios.
C)  There is no relationship between the likelihood of collusion and the size of the concentration ratio.

Question 15

Corporate concentration can be measured by

Accepted Answer

A)  only the concentration ratio.
B)  only the Herfindahl-Hirschman index.
C)  both the concentration ratio and the Herfindahl-Hirschman index.
D)  neither the concentration ratio nor the Herfindahl index.

Question 16

Use the following Table to answer the question :

-Calculate the Herfindahl-Hirschman Index in this industry.

Accepted Answer

The answer of Use the following Table to answer the...

Question 17

Which statement is true?

Accepted Answer

A)  Most oligopolies in the United States take the form of a cartel.
B)  Covert collusion has probably never taken place among American oligopolists.
C)  The cartel and the cut throat competitor are on opposite ends of the competitive spectrum.
D)  None of these statements are true.

Question 18

Which statement is true?

Accepted Answer

A)  The higher the concentration ratio, the higher the degree of oligopolization.
B)  The lower the concentration ratio, the higher the degree of oligopolization.
C)  The concentration ratio remains constant as the degree of oligopolization rises.
D)  There is no relationship between the concentration ratio and the degree of oligopolization.

Question 19

Assume that four oligopolists begin with a common price of p = $20. One of the firms lowers its price to $17. What are the other three firms likely to do, based on the theory of the kinked demand curve?

Accepted Answer

A)  Lose $3 per unit
B)  Make $3 more per unit than the firm that lowered price
C)  Raise their prices above $20 to make up for the lost volume
D)  Lower their prices to $17 so that they won't lose business to their competitor

Question 20

In 1961, seven companies in the ___________ industry were found guilty by the Supreme Court of illegal price-fixing and market-sharing agreements.

Accepted Answer

The answer of In 1961, seven companies in the ___________...

Exam 12: Oligopoly

Which statement about oligopolies is true?

Correct AnswerverifiedShow Answer

Use the following Table to answer the question : -Given the information in the table below, calculate (a) the concentration ratio; and (b) the Herfindahl-Hirschman index.

Correct Answerverified(a) 26 + 2...View AnswerShow Answer

An industry with a Herfindahl-Hirschman index of 1,000 would have ____ firm(s) .

Correct AnswerverifiedB

Use the following Table to answer the question : -If the firm were a perfect competitor in the long run, what price would it charge?

Correct AnswerverifiedShow Answer

The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : -If the firm were a perfect competitor in the long run, how much would its output be?

Correct AnswerverifiedShow Answer

The least competitive form of oligopoly would be a __________.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Use the following Table to answer the question : -Which statement is true?

Correct AnswerverifiedA

___________ prices are set by large corporations for relatively long periods of time.

Correct AnswerverifiedShow Answer

A low concentration ratio would most likely indicate

Correct AnswerverifiedShow Answer

Which of the following represents an illegal control of prices?

Correct AnswerverifiedA

Which statement is true?

Correct AnswerverifiedShow Answer

Corporate concentration can be measured by

Correct AnswerverifiedShow Answer

Use the following Table to answer the question : -Calculate the Herfindahl-Hirschman Index in this industry.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Assume that four oligopolists begin with a common price of p = $20. One of the firms lowers its price to $17. What are the other three firms likely to do, based on the theory of the kinked demand curve?

Correct AnswerverifiedShow Answer

In 1961, seven companies in the ___________ industry were found guilty by the Supreme Court of illegal price-fixing and market-sharing agreements.

Correct AnswerverifiedShow Answer

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(a) 26 + 2...
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B

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