A firm in a monopolistically competitive industry ?

Related Mcqs:

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...

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...

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...

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...

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

A. price leadership B. price concentration C. collusion D. game theory,...