29 Dec 94) The number of firms in an oligopolistic
90) One of the strongest reasons that oligopolies exist is due to A) the homogeneity of their products.
B) marginal cost pricing. C) lowest cost production. D) economies of scale.
25
Copyright © 2012 Pearson Education, Inc.
92) Economies of scale means that
A) the average fixed cost curve slopes downward over its entire range.
B) the four-firm concentration ratio is below 80.
C) the long-run average total cost curve slopes downward over it entire range.
D) the long-run total cost curve slopes downward over it entire range.
93) The higher the concentration ratio is in an industry, the more likely it is that A) the industry is perfectly competitive.
B) the market share of the smallest four firms is larger. C) the market share of the largest four firms is smaller. D) the industry has an oligopoly.
94) The number of firms in an oligopolistic industry
A) must be less than 10.
B) must be less than 20.
C) must be small enough that firms are interdependent.
D) must be large enough for firms to be independent.
95) The outputs of an oligopolistic industry
A) can be homogeneous or differentiated.
B) must cost above $100 on the market.
C) always have excise taxes imposed on them.
D) have no substitutes on the market.
26
Copyright © 2012 Pearson Education, Inc.
96) Oligopolistic industries are characterized by a A) few large firms and no barriers to entry.
B) large number of firms and no barriers to entry. C) few large firms and substantial barriers to entry.
D) large number of firms and substantial barriers to entry.
97) Economies of scale
A) do not arise in oligopolistic industries.
B) can exist but are rare in oligopolistic industries.
C) can exist but fail to create barriers to entry in oligopolistic industries.
D) are commonplace and often a barrier to entry in oligopolistic industries.
98) Suppose an industry is composed of 10 firms. Each firm’s share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will A) remain unchanged.
B) decrease as there are fewer firms in the industry. C) increase.
D) depend on the market condition faced by the industry.
99) Suppose an industry is composed of 10 firms. Each firm’s share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry is A) 40 percent.
B) 45 percent. C) 50 percent.
D) unable to determine.
27
Copyright © 2012 Pearson Education, Inc.
100) The merger of two pizza restaurant chains would be an example of A) a horizontal merger.
B) a vertical merger.
C) a conglomerate merger. D) an independent merger.
Rating:
4.1/5
Report this Question as Inappropriate
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteEdu. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
Do you need help with this question?
Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.
WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.
With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Chat with us today! We are always waiting to answer all your questions.