Which of the following statements best describes the outcome under monopolistic competition ?

It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum aver

It is efficient because entry is free and economic profits are eliminated in the long run.

It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost

It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

Which of the following is most likely to be a variable cost for a firm ?

The monthly rent on office space that it leased for a year

The franchiser’s fee that a restaurant must pay to the national restaurant chain

The payroll taxes that are paid on employee wages.

The monthly rent on office space that it leased for a year

The interest payments made on loans.

Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

If AP is at a maximum, then MP is also,

If TP is declining, then AP is negative

If AP = MP, then total product is at a maximum.

If AP exceeds MP then AP is falling

If AP is at a maximum, then MP is also,

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

indeterminate from this information

The slope of marginal revenue curve is ?

half as steep as the demand curve

the same as the slope of the demand curve

twice as steep as the demand curve

The short run, as economists use the phrase, is characterized by ?

a period where the law of diminishing returns does not hold.

at least one fixed factor of production and firms neither leaving nor entering the industry

no variable inputs – that is all of the factors of production are fixed

The short run, as economists use the phrase, in characterized by ?

no variable inputs – that is, all of the factors of production are fixed

at least one fixed factor of production and firms neither leaving nor entering the industry.

no variable inputs – that is, all of the factors of production are fixed

a period where the law of diminishing returns does not hold

The rate at which a firm can substitute capital for labour and hold output constant is the ?

marginal rate of factor substitution

law of diminishing marginal returns.

The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?

firms realize all economies of scale

the efficient output level will be produced in the long run

firms will only earn a normal profit

firms realize all economies of scale

firms will be producing at minimum average cost

The kinked demand curve model of oligopoly assumes the elasticity of demand ?

in response to a price increase is less elastic than the elasticity of demand in response to a price decrease

is perfectly elastic if price increases and perfectly inelastic if price decreases

is constant regardless of whether price increase of decrease.

in response to a price increases is more elastic than the elasticity of demand in response to a price decrease

The costs that depend on output in the short run are ?

both total variable costs and total costs.

The cosmetics industry is not considered by economists to be a good example of perfect competition because ?

profit margins are very high for both producers and retailers

there are many EU and government health controls on cosmetic products

there are a very large number of firms in the industry

firms spend a large amount of money on advertising

profit margins are very high for both producers and retailers

Relative to a competitively organized industry a monopoly ?

Produces less output, charges lower prices and earns only a normal profit

Produces less output, charges higher prices and earns economic profits.

Produces less output, charges lower prices and earns only a normal profit

produces more output, charges higher prices and earns economics profits

produces less output, charges lower prices and earns economic profits

Profit-maximizing firms want to maximize the difference between ?

total revenue and marginal cost

marginal revenue and marginal cost.

total revenue and marginal cost

marginal revenue and average cost

Most empirical studies show that firm’s cost curves ?

slope down to the right and then level off.

Monopolistic competition differs from perfect competition primarily because ?

in perfect competition firms can differentiate their products

in monopolistic competition entry into the industry is blocked

in monopolistic competition there are relatively few barriers to entry.

in monopolistic competition, firms can differentiate their products

in perfect competition firms can differentiate their products

a firm’s ability to sell any amount of output it desires at the market-determined price.

a firm’s ability to monopolies a market completely.

a firm’s ability to raise price without losing all demand for its product

a firm’s ability to sell any amount of output it desires at the market-determined price.

a firm’s ability to charge any price it likes

Marginal revenue is ?

the additional profit the firms earns when it sells an additional unit of output

the difference between total revenue and total cost

The ratio of total revenue to quantity.

the added revenue that a firm takes in when it increases output by one additional unit.

In which of the following circumstances would a cartel be most likely to work ?

The fast-food market where there are a large number of producers but the demand for fast food is inelastic

The market for copper, where there are very few producers and the product is standardized.

The fast-food market where there are a large number of producers but the demand for fast food is inelastic

The coffee market where the product is standardized and there are a large number of coffee growers.

The automobile industry, where there are few producers but there is great product differentiation.

a firm can vary all inputs, but it cannot change the mix of inputs it uses.

all firms must make economic profits.

there are no fixed factors of production

a firm can vary all inputs, but it cannot change the mix of inputs it uses.

a firm can shut down, but it cannot exit the industry

In monopolistic competition firms achieve some degree of market power ?

because of barriers to exit from the industry

by producing differentiated products

because of barriers to exit from the industry

because of barriers to entry into the industry

In contestable markets, large oligopolistic firms, end up behaving like ?

monopolistically competitive firms.

In contestable markets large oligopolistic firms end up behaving like ?

monopolistically competitive firms

In a monopoly, marginal revenue is ?

less than price at low levels of output and greater than price at high levels of output

lower than price for all units other than the first

less than price at low levels of output and greater than price at high levels of output

If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?

how much to spend on advertising?

If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?

total costs exceed total revenue

total costs exceed normal profit

the firm is earning are economic profit

If a firm has some degree of market power, then output price ?

is guaranteed to be above a firm’s average cost.

no longer influences the amount demand of the firm’s product

becomes a decision variable for the firm

is guaranteed to be above a firm’s average cost.

is determined by the actions of other firms in the industry

Form society’s point of view, society would be better off if a monopolist ?

produced less and charged a lower price.

produced less and charged a higher price

produced more and charged a higher price

produced more and charged a lower price

produced less and charged a lower price.

Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

average costs to remain constant

Economic profits are ?

the opportunity costs of all inputs

the difference between total revenue and total costs.

anything greater than the normal opportunity cost of investing

the opportunity costs of all inputs

a rate of profit that is just sufficient to keep owners and investors satisfied

Diminishing marginal return implies ?

decreasing average fixed costs.

decreasing average variable costs.

An oligopoly with a dominant price leader will produce a level of output ?

that would prevail under competition

equal to what a monopolist would choose in the same industry

between that which would prevail under competition and that which a monopolist would choose in the same industry

that would prevail under competition

between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

a government franchise monopoly

A normal rate of profit ?

is the difference between total revenue and total costs

Is the rate of return on investments over the interest rate on risk-free government bonds.

is the rate that is just sufficient to keep owners or investors satisfied.

is the difference between total revenue and total costs

is zero in a perfectly competitive industry.

A market is defined as perfectly contestable if ?

entry to it and exit from it are both costly

entry to it and exit from it are both costless

entry to it and exit from it are both costly

entry to it costless, but exit from it is costless

entry to it is costly, but exit from it is costless

A major weakness of the kinked demand curve model of oligopoly is that ?

The model cannot be tested empirically.

it assumes that firms believe that their rivals will not respond to any price change they initiate

it fails to explain how a firm arrived at its price and output decision initially

The model cannot be tested empirically.

Real-world pricing strategies are more simple than those assumed in this model

53 + Mcqs in Profit Maximizing Under Perfect Competition & Monopoly in Economics Page 1 McqOptions

1.	Which of the following statements best describes the outcome under monopolistic competition ?
A.	It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum aver
B.	It is efficient because entry is free and economic profits are eliminated in the long run.
C.	It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
D.	It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.
Answer» D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

Discussion

2.	Which of the following is most likely to be a variable cost for a firm ?
A.	The franchiser’s fee that a restaurant must pay to the national restaurant chain
B.	The payroll taxes that are paid on employee wages.
C.	The monthly rent on office space that it leased for a year
D.	The interest payments made on loans.
Answer» C. The monthly rent on office space that it leased for a year

Discussion

3.	Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?
A.	If TP is declining, then AP is negative
B.	If AP = MP, then total product is at a maximum.
C.	If AP exceeds MP then AP is falling
D.	If AP is at a maximum, then MP is also,
Answer» D. If AP is at a maximum, then MP is also,

Discussion

4.	When ________ substitutes exist, a monopolist has ________ power to raise price?
A.	more; more
B.	fewer; less
C.	more; less
D.	no; infinite
Answer» D. no; infinite

Discussion

5.	When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A.	monopolistically competitive
B.	oligopolistic
C.	perfectly competitive
D.	indeterminate from this information
Answer» C. perfectly competitive

Discussion

6.	The slope of marginal revenue curve is ?
A.	always equal to one.
B.	half as steep as the demand curve
C.	the same as the slope of the demand curve
D.	twice as steep as the demand curve
Answer» E.

Discussion

7.	The short run, as economists use the phrase, is characterized by ?
A.	a period where the law of diminishing returns does not hold.
B.	at least one fixed factor of production and firms neither leaving nor entering the industry
C.	all inputs being variable
D.	no variable inputs – that is all of the factors of production are fixed
Answer» C. all inputs being variable

Discussion

8.	The short run, as economists use the phrase, in characterized by ?
A.	at least one fixed factor of production and firms neither leaving nor entering the industry.
B.	no variable inputs – that is, all of the factors of production are fixed
C.	all inputs being variable
D.	a period where the law of diminishing returns does not hold
Answer» B. no variable inputs – that is, all of the factors of production are fixed

Discussion

9.	The rate at which a firm can substitute capital for labour and hold output constant is the ?
A.	marginal rate of factor substitution
B.	marginal rate of substitution
C.	law of diminishing marginal returns.
D.	marginal rate of production
Answer» B. marginal rate of substitution

Discussion

10.	The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
A.	approximately one-half
B.	smaller than
C.	larger than
D.	approximately equal to
Answer» E.

Discussion

11.	The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A.	the efficient output level will be produced in the long run
B.	firms will only earn a normal profit
C.	firms realize all economies of scale
D.	firms will be producing at minimum average cost
Answer» C. firms realize all economies of scale

Discussion

12.	The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A.	in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B.	is perfectly elastic if price increases and perfectly inelastic if price decreases
C.	is constant regardless of whether price increase of decrease.
D.	in response to a price increases is more elastic than the elasticity of demand in response to a price decrease
Answer» E.

Discussion

13.	The formula for average variable cost (AVC) is ?
A.	DTVC/Dq
B.	DTVC/Dq
C.	Dq/DTVC
D.	TVC/q
Answer» E.

Discussion

14.	The formula for average fixed costs is ?
A.	Dq/DTFC
B.	TFC – q
C.	TFC/q
D.	q/TFC
Answer» D. q/TFC

Discussion

15.	The costs that depend on output in the short run are ?
A.	total fixed cost only.
B.	total variable costs only.
C.	both total variable costs and total costs.
D.	total costs only
Answer» D. total costs only

Discussion

16.	The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
A.	there are many EU and government health controls on cosmetic products
B.	there are a very large number of firms in the industry
C.	firms spend a large amount of money on advertising
D.	profit margins are very high for both producers and retailers
Answer» D. profit margins are very high for both producers and retailers

Discussion

17.	Relative to a competitively organized industry a monopoly ?
A.	Produces less output, charges higher prices and earns economic profits.
B.	Produces less output, charges lower prices and earns only a normal profit
C.	produces more output, charges higher prices and earns economics profits
D.	produces less output, charges lower prices and earns economic profits
Answer» B. Produces less output, charges lower prices and earns only a normal profit

Discussion

18.	Profit-maximizing firms want to maximize the difference between ?
A.	marginal revenue and marginal cost.
B.	total revenue and total cost
C.	total revenue and marginal cost
D.	marginal revenue and average cost
Answer» C. total revenue and marginal cost

Discussion

19.	Most empirical studies show that firm’s cost curves ?
A.	slope up to the right
B.	are U-shaped
C.	slope down to the right
D.	slope down to the right and then level off.
Answer» E.

Discussion

20.	Monopolistic competition differs from perfect competition primarily because ?
A.	in monopolistic competition entry into the industry is blocked
B.	in monopolistic competition there are relatively few barriers to entry.
C.	in monopolistic competition, firms can differentiate their products
D.	in perfect competition firms can differentiate their products
Answer» D. in perfect competition firms can differentiate their products

Discussion

21.	Maximum profit can be shown on a diagram using ?
A.	the MR and MC curves
B.	the AC and AR curves
C.	the AC and MC curves
D.	the MR and AR curves
Answer» C. the AC and MC curves

Discussion

22.	Market power is ?
A.	a firm’s ability to monopolies a market completely.
B.	a firm’s ability to raise price without losing all demand for its product
C.	a firm’s ability to sell any amount of output it desires at the market-determined price.
D.	a firm’s ability to charge any price it likes
Answer» C. a firm’s ability to sell any amount of output it desires at the market-determined price.

Discussion

23.	Marginal revenue is ?
A.	the additional profit the firms earns when it sells an additional unit of output
B.	the difference between total revenue and total cost
C.	The ratio of total revenue to quantity.
D.	the added revenue that a firm takes in when it increases output by one additional unit.
Answer» E.

Discussion

24.	In which of the following circumstances would a cartel be most likely to work ?
A.	The market for copper, where there are very few producers and the product is standardized.
B.	The fast-food market where there are a large number of producers but the demand for fast food is inelastic
C.	The coffee market where the product is standardized and there are a large number of coffee growers.
D.	The automobile industry, where there are few producers but there is great product differentiation.
Answer» B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic

Discussion

25.	In the long run ?
A.	all firms must make economic profits.
B.	there are no fixed factors of production
C.	a firm can vary all inputs, but it cannot change the mix of inputs it uses.
D.	a firm can shut down, but it cannot exit the industry
Answer» C. a firm can vary all inputs, but it cannot change the mix of inputs it uses.

Discussion

26.	In monopolistic competition firms achieve some degree of market power ?
A.	by producing differentiated products
B.	because of barriers to exit from the industry
C.	by virtue of size alone
D.	because of barriers to entry into the industry
Answer» B. because of barriers to exit from the industry

Discussion

27.	In contestable markets, large oligopolistic firms, end up behaving like ?
A.	perfectly competitive firms
B.	a cartel
C.	a monopoly
D.	monopolistically competitive firms.
Answer» E.

Discussion

28.	In contestable markets large oligopolistic firms end up behaving like ?
A.	monopolistically competitive firms
B.	a cartel
C.	perfectly competitive firms
D.	a monopoly.
Answer» B. a cartel

Discussion

29.	In a monopoly, marginal revenue is ?
A.	lower than price for all units other than the first
B.	less than price at low levels of output and greater than price at high levels of output
C.	always greater than price
D.	always equal to price
Answer» B. less than price at low levels of output and greater than price at high levels of output

Discussion

30.	If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?
A.	how much to spend on advertising?
B.	how much of each input to use?
C.	What price to charge
D.	none of these
Answer» C. What price to charge

Discussion

31.	If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
A.	160; 270
B.	10; 30
C.	10; 3.33
D.	30; 10
Answer» E.

Discussion

32.	If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?
A.	normal profit is zero
B.	total costs exceed total revenue
C.	total costs exceed normal profit
D.	the firm is earning are economic profit
Answer» E.

Discussion

33.	If firms can neither enter nor leaves an industry, the relevant time period is the ?
A.	immediate run
B.	intermediate run
C.	long run
D.	short run
Answer» E.

Discussion

34.	If a firm has some degree of market power, then output price ?
A.	no longer influences the amount demand of the firm’s product
B.	becomes a decision variable for the firm
C.	is guaranteed to be above a firm’s average cost.
D.	is determined by the actions of other firms in the industry
Answer» C. is guaranteed to be above a firm’s average cost.

Discussion

35.	Form society’s point of view, society would be better off if a monopolist ?
A.	produced less and charged a higher price
B.	produced more and charged a higher price
C.	produced more and charged a lower price
D.	produced less and charged a lower price.
Answer» D. produced less and charged a lower price.

Discussion

36.	Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
A.	average costs to remain constant
B.	average costs to decrease
C.	average costs to increase
D.	marginal costs to increase
Answer» B. average costs to decrease

Discussion

37.	Economic profits are ?
A.	the difference between total revenue and total costs.
B.	anything greater than the normal opportunity cost of investing
C.	the opportunity costs of all inputs
D.	a rate of profit that is just sufficient to keep owners and investors satisfied
Answer» C. the opportunity costs of all inputs

Discussion

38.	Diminishing marginal return implies ?
A.	decreasing average fixed costs.
B.	decreasing marginal costs.
C.	decreasing average variable costs.
D.	increasing marginal costs.
Answer» E.

Discussion

39.	Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?
A.	decrease; decrease
B.	increase; decrease
C.	decrease; increase
D.	increase; increase
Answer» D. increase; increase

Discussion

40.	An oligopoly with a dominant price leader will produce a level of output ?
A.	equal to what a monopolist would choose in the same industry
B.	between that which would prevail under competition and that which a monopolist would choose in the same industry
C.	that would prevail under competition
D.	between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.
Answer» C. that would prevail under competition

Discussion

41.	An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
A.	a fixed cost monopoly
B.	a natural monopoly
C.	a government franchise monopoly
D.	a economies of scale monopoly
Answer» C. a government franchise monopoly

Discussion

42.	An industry that has a relatively small number of firms that dominate the market is called ?
A.	a colluding industry
B.	a merged industry
C.	a concentrated industry
D.	a natural monopoly
Answer» D. a natural monopoly

Discussion

43.	A price- and quantity-fixing agreement is known as?
A.	price leadership
B.	price concentration
C.	collusion
D.	game theory,
Answer» D. game theory,

Discussion

44.	A normal rate of profit ?
A.	Is the rate of return on investments over the interest rate on risk-free government bonds.
B.	is the rate that is just sufficient to keep owners or investors satisfied.
C.	is the difference between total revenue and total costs
D.	is zero in a perfectly competitive industry.
Answer» C. is the difference between total revenue and total costs

Discussion

45.	A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
A.	marginal costs
B.	fixed costs
C.	variable costs
D.	advertising costs
Answer» D. advertising costs

Discussion

46.	A market is defined as perfectly contestable if ?
A.	entry to it and exit from it are both costless
B.	entry to it and exit from it are both costly
C.	entry to it costless, but exit from it is costless
D.	entry to it is costly, but exit from it is costless
Answer» B. entry to it and exit from it are both costly

Discussion

47.	A major weakness of the kinked demand curve model of oligopoly is that ?
A.	it assumes that firms believe that their rivals will not respond to any price change they initiate
B.	it fails to explain how a firm arrived at its price and output decision initially
C.	The model cannot be tested empirically.
D.	Real-world pricing strategies are more simple than those assumed in this model
Answer» C. The model cannot be tested empirically.

Discussion

48.	A group of firms that gets together to make price and output decisions is called ?
A.	a concentrated industry.
B.	a cartel
C.	price leadership
D.	an oligopoly.
Answer» C. price leadership

Discussion

49.	A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A.	an indifference curves.
B.	an isoquant.
C.	an isocost line
D.	a production functions
Answer» C. an isocost line

Discussion

50.	A graph showing all the combinations capital and labor available for a given total cost is the ?
A.	expenditure set
B.	isocost line.
C.	budget constraint
D.	isoquant
Answer» C. budget constraint

Discussion

Explore topic-wise MCQs in Economics.

Which of the following statements best describes the outcome under monopolistic competition ?

Which of the following is most likely to be a variable cost for a firm ?

Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

When ________ substitutes exist, a monopolist has ________ power to raise price?

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

The slope of marginal revenue curve is ?

The short run, as economists use the phrase, is characterized by ?

The short run, as economists use the phrase, in characterized by ?

The rate at which a firm can substitute capital for labour and hold output constant is the ?

The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?

The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?

The kinked demand curve model of oligopoly assumes the elasticity of demand ?

The formula for average variable cost (AVC) is ?

The formula for average fixed costs is ?

The costs that depend on output in the short run are ?

The cosmetics industry is not considered by economists to be a good example of perfect competition because ?

Relative to a competitively organized industry a monopoly ?

Profit-maximizing firms want to maximize the difference between ?

Most empirical studies show that firm’s cost curves ?

Monopolistic competition differs from perfect competition primarily because ?

Maximum profit can be shown on a diagram using ?

Market power is ?

Marginal revenue is ?

In which of the following circumstances would a cartel be most likely to work ?

In the long run ?

In monopolistic competition firms achieve some degree of market power ?

In contestable markets, large oligopolistic firms, end up behaving like ?

In contestable markets large oligopolistic firms end up behaving like ?

In a monopoly, marginal revenue is ?

If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?

If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?

If firms can neither enter nor leaves an industry, the relevant time period is the ?

If a firm has some degree of market power, then output price ?

Form society’s point of view, society would be better off if a monopolist ?

Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

Economic profits are ?

Diminishing marginal return implies ?

Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

An oligopoly with a dominant price leader will produce a level of output ?

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

An industry that has a relatively small number of firms that dominate the market is called ?

A price- and quantity-fixing agreement is known as?

A normal rate of profit ?

A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?

A market is defined as perfectly contestable if ?

A major weakness of the kinked demand curve model of oligopoly is that ?

A group of firms that gets together to make price and output decisions is called ?

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

A graph showing all the combinations capital and labor available for a given total cost is the ?

When substitutes exist, a monopolist has power to raise price?

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is and the marginal product of the third worker is _?

Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _ and the total output produced will __?