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 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.

In contestable markets large oligopolistic firms end up behaving like ?

monopolistically competitive firms

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.

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

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.

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

both total variable costs and total costs.

Diminishing marginal return implies ?

decreasing average fixed costs.

decreasing average variable costs.

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

monopolistically competitive firms.

Which statement is False ?

Fixed costs are the difference between total costs and total variable costs

Fixed costs are zero if the firms is producing nothing.

Fixed costs are the difference between total costs and total variable costs

There are no fixed costs in the long run

Fixed costs do not depend on the firm’s level of output

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.

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

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

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.

Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

maximized the difference between marginal revenue and marginal cost.

set price equal to its average cost

equated marginal revenue and marginal cost

maximized the difference between marginal revenue and marginal cost.

A market is defined as perfectly contestable if ?

entry to it and exit from it are both costly

entry to it is costly but exit from it is costless

entry to it and exit from it are both costless

entry to it and exit from it are both costly

entry to ti costless but exist from it is costly

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

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

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 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

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

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?

Which of the following statements is False ?

participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap

In a contestable market, economic profits cannot persist in the long run.

In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business

For a market to be contestable, the product must be produced with a labor-intensive technology

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.

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

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 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

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,

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

Most empirical studies show that firm’s cost curves ?

slope down to the right and then level off.

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

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

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

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

1.	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

2.	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

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

Discussion

4.	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

5.	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

6.	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

7.	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

8.	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

9.	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

10.	Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A.	downward sloping to the right
B.	U-shaped
C.	Horizontal
D.	upward sloping to the right
Answer» C. Horizontal

Discussion

11.	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

12.	A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A.	£35
B.	£15
C.	£30
D.	£60
Answer» B. £15

Discussion

13.	A firm will shut down in the short run if ?
A.	fixed costs exceed revenues.
B.	it is suffering a loss.
C.	variable costs exceed revenues
D.	total costs exceed revenues
Answer» D. total costs exceed revenues

Discussion

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

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.	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

17.	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

18.	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

19.	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

20.	Which statement is False ?
A.	Fixed costs are zero if the firms is producing nothing.
B.	Fixed costs are the difference between total costs and total variable costs
C.	There are no fixed costs in the long run
D.	Fixed costs do not depend on the firm’s level of output
Answer» B. Fixed costs are the difference between total costs and total variable costs

Discussion

21.	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

22.	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

23.	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

24.	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

25.	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

26.	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

27.	Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
A.	maximized its total revenue
B.	set price equal to its average cost
C.	equated marginal revenue and marginal cost
D.	maximized the difference between marginal revenue and marginal cost.
Answer» D. maximized the difference between marginal revenue and marginal cost.

Discussion

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

Discussion

29.	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

30.	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

31.	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

32.	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

33.	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

34.	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

35.	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

36.	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

37.	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

38.	Which of the following statements is False ?
A.	participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap
B.	In a contestable market, economic profits cannot persist in the long run.
C.	In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business
D.	For a market to be contestable, the product must be produced with a labor-intensive technology
Answer» E.

Discussion

39.	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

40.	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

41.	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

42.	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

43.	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

44.	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

45.	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

46.	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

47.	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

48.	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

49.	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

50.	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

Explore topic-wise MCQs in Economics Mcqs.

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

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

The formula for average fixed costs is ?

Maximum profit can be shown on a diagram using ?

In contestable markets large oligopolistic firms end up behaving like ?

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

Marginal revenue is ?

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

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

Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

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

A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

A firm will shut down in the short run if ?

The formula for average variable cost (AVC) is ?

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

Diminishing marginal return implies ?

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

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 _________?

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

Which statement is False ?

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

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

The slope of marginal revenue curve is ?

Economic profits are ?

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

A normal rate of profit ?

Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

A market is defined as perfectly contestable if ?

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 ?

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 ?

In a monopoly, marginal revenue is ?

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

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

In the long run ?

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

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

Which of the following statements is False ?

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

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

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

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

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?

Most empirical studies show that firm’s cost curves ?

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

Monopolistic competition differs from perfect competition primarily because ?

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

In monopolistic competition firms achieve some degree of market power ?

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 _?

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

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 __?