[{"id":213321,"question":"The key feature of oligopoly is.","choices":[{"text":"Excess capacity","value":"A"},{"text":"High profitability","value":"B"},{"text":"Product differentiation","value":"C"},{"text":"Interdependence of firms","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213320,"question":"In order to constitute an oligopolistic market structure.","choices":[{"text":"There must be a few firms in a given relevant market","value":"A"},{"text":"There must be a few firms selling in a national market","value":"B"},{"text":"There must be more than 20 firms selling in the international market","value":"C"},{"text":"There must be fewer than 15 firm is any given market","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213319,"question":"The firm under monopolistic competition is likely to produce less and set a higher price than under perfect competition because.","choices":[{"text":"The firm faces decreasing returns to scale","value":"A"},{"text":"The firm faces increasing costs","value":"B"},{"text":"The firm must incur selling expenses including advertising.","value":"C"},{"text":"The firm faces a downward sloping demand curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213318,"question":"In the neighborhood of the long run equilibrium of a monopolistically competitive firm average cost will be.","choices":[{"text":"Decreasing","value":"A"},{"text":"Constant","value":"B"},{"text":"Increasing","value":"C"},{"text":"At a minimum","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213317,"question":"One of the difference between a perfectly competitive fir's long run equilibrium and the long run equilibrium of a monopolistically competitive firm is that","choices":[{"text":"LMS = MR under perfect competition but not under monopolistic competition","value":"A"},{"text":"SAC = LAC under perfect competition but not under monopolistic competition","value":"B"},{"text":"SMC = LMC under perfect competition but not under monopolistic competition","value":"C"},{"text":"LAC = LMC under perfect competition, but not under monopolistic competition","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213316,"question":"A monopolistically competitive firm differs from a perfectly competitive firming that unlike the perfectly competitive firm it.","choices":[{"text":"Faces a downward sloping demand curve","value":"A"},{"text":"Can change the characteristics of its product.","value":"B"},{"text":"Can vary the price of its product.","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213315,"question":"Which of the following does not characterize monopolistic competition.","choices":[{"text":"Product differentiation","value":"A"},{"text":"Many producers","value":"B"},{"text":"Absence of advertising","value":"C"},{"text":"Some control over price","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213314,"question":"An oligopolistic industry can be characterized by all of the following except","choices":[{"text":"May sellers","value":"A"},{"text":"mutual interdependence","value":"B"},{"text":"Economies of scale","value":"C"},{"text":"A homogenous product","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213313,"question":"A monolithically competitive market is characterized by all of the following except.","choices":[{"text":"Easy entry","value":"A"},{"text":"Differentiated product","value":"B"},{"text":"Excess capacity","value":"C"},{"text":"Economic profit in the long run","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213312,"question":"The conditions necessary for a firm to be able to price discriminate include.","choices":[{"text":"Segment able markets","value":"A"},{"text":"Difference in price elasticity of demand among the segments","value":"B"},{"text":"The inability of customers to transfer products","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213311,"question":"If a monopoly is unable to cover its short run variable costs, if should.","choices":[{"text":"Shut down","value":"A"},{"text":"Raise price","value":"B"},{"text":"Lower price","value":"C"},{"text":"Increase output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213310,"question":"A monopolist will discontinue production if","choices":[{"text":"Marginal revenue is less than marginal cost","value":"A"},{"text":"Marginal revenue is less than average total cost","value":"B"},{"text":"Marginal revenue is less the average fixed cost","value":"C"},{"text":"Price is less than average variable cost","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213309,"question":"If the monopolist maximizes profits when marginal revenue equals marginal cost equals average cost economic profits must be.","choices":[{"text":"Negative","value":"A"},{"text":"Positive","value":"B"},{"text":"Zero","value":"C"},{"text":"Either a or c","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213308,"question":"If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will","choices":[{"text":"Earn positive economic profits","value":"A"},{"text":"Earn zero economic profits","value":"B"},{"text":"Incur a loss equal to its variable costs","value":"C"},{"text":"Incur a loss equal to its fixed costs","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213307,"question":"Which skills are most likely to be paid for by the employer.","choices":[{"text":"General skills","value":"A"},{"text":"Specific skills","value":"B"},{"text":"Educational skills","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213306,"question":"Suppose taht an exise tax is imposed on the monopolist's product if the monopolist's marginal cost is horizontally the relevant range, which of the following statements must be true.","choices":[{"text":"The price will increase by an amount less than the tax","value":"A"},{"text":"The price will increase by an amount equal to the tax","value":"B"},{"text":"The price will increase by a amount greater than tax","value":"C"},{"text":"The price may either increase or decrease","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213305,"question":"If a monopolist's demand curve is downward sloping and linear, then its total revenue curve must be.","choices":[{"text":"Identical to the demand curve","value":"A"},{"text":"A ray from the origin with a slope equal to price","value":"B"},{"text":"negative sloped with twice the slope of the demand curve","value":"C"},{"text":"A rising function of output that increases at a decreasing rate , reaches a maximum, then falls.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213304,"question":"A monopolist will maximize profit.","choices":[{"text":"Where total revenue is maximized","value":"A"},{"text":"Where the slope of the total revenue function equals the slope of the total cost function","value":"B"},{"text":"Where average cost is at a minimum","value":"C"},{"text":"Where all the above are ture","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213303,"question":"In the long run a profit maximizing monopoly produces an output volume that","choices":[{"text":"Equates long run marginal cost with marginal revenue","value":"A"},{"text":"Equates long run average revenue","value":"B"},{"text":"Assures permanent positive profit","value":"C"},{"text":"Is correctly described by both a and c","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213302,"question":"If both supply and demand for a good increase at the same time which of the following must also increase","choices":[{"text":"The equilibrium price","value":"A"},{"text":"The use of substitutes","value":"B"},{"text":"The equilibrium quantity","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":3}]