Question 1

If a firm's marginal costs ________ then its ________.

Accepted Answer

A)  fall; best-response curve shifts
B)  rise; forced out of the oligopoly
C)  rise; output increases
D)  fall; price fallsE) B) and C)
F) All of the above

Question 2

Mergers often increase profit by

Accepted Answer

A)  producing economies of scale.
B)  producing economies of scope.
C)  increasing efficiency of the firm.
D)  All of the above.E) All of the above
F) C) and D)

Question 3

The Organization of Petroleum Exporting Countries (OPEC) is an example of a(n)

Accepted Answer

A)  oil monopoly.
B)  cartel.
C)  competitive arrangement.
D)  prisoner's dilemma.E) B) and C)
F) All of the above

Question 4

In a Bertrand model with identical firms and a non-differentiated product, price will increase in response to

Accepted Answer

A)  an increase in the number of firms.
B)  a decrease in the number of firms.
C)  an increase in marginal cost.
D)  a decrease in marginal cost.E) B) and C)
F) None of the above

Exam 11: Oligopoly and Monopolistic Competition

The Organization of Petroleum Exporting Countries (OPEC) is an example of a(n)

Correct Answer
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If a firm's marginal costs then its .

Correct Answer
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Mergers often increase profit by

Correct Answer
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In a Bertrand model with identical firms and a non-differentiated product, price will increase in response to

Correct Answer
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Exam 11: Oligopoly and Monopolistic Competition

The Organization of Petroleum Exporting Countries (OPEC) is an example of a(n)

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If a firm's marginal costs ________ then its ________.

Correct AnswerverifiedShow Answer

Mergers often increase profit by

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In a Bertrand model with identical firms and a non-differentiated product, price will increase in response to

Correct AnswerverifiedShow Answer

Correct Answer
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If a firm's marginal costs then its .

Correct Answer
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Correct Answer
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Correct Answer
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