Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 17, Problem 4CQQ
To determine
Relevance of oligopoly.
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As the number of firms in an oligopoly grows, theindustry approaches a level of output _________ thecompetitive level and _________ the monopoly level.a. less than; more thanb. more than; less thanc. less than; equal tod. equal to; more than
If an oligopoly does not cooperate and each firmchooses its own quantity, the industry will producea quantity of output _________ the competitive leveland _________ the monopoly level.a. less than; more thanb. more than; less thanc. less than; equal tod. equal to; more than
Question 20
In the market for a brand name medicine with a single company selling the medicine,
that company is a_______Eventually, the government lets other companies sell the medicine as a "generic" alternative to the brand name. The effect of this increased competition is to_______ the medicine's price.O. monopoly, decreaseO. oligopoly, decreaseO. monopoly, increaseO. oligopoly, increase
Chapter 17 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 17.1 - Prob. 1QQCh. 17.2 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17 - Prob. 1CQQCh. 17 - Prob. 2CQQCh. 17 - Prob. 3CQQCh. 17 - Prob. 4CQQCh. 17 - Prob. 5CQQCh. 17 - Prob. 6CQQCh. 17 - Prob. 1QR
Ch. 17 - Prob. 2QRCh. 17 - Prob. 3QRCh. 17 - Prob. 4QRCh. 17 - Prob. 5QRCh. 17 - Prob. 6QRCh. 17 - Prob. 7QRCh. 17 - Prob. 1PACh. 17 - Prob. 2PACh. 17 - Prob. 3PACh. 17 - Prob. 4PACh. 17 - Prob. 5PACh. 17 - Prob. 6PACh. 17 - A case study in the chapter describes a phone...Ch. 17 - Prob. 8PACh. 17 - Prob. 9PA
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- Which of the following would most likely create the setting for an Oligopoly ? A. The government grants T'Challa and Nakia a patent for their respective vibranium-based electric car batteries. B. Market Demand is two or more times less than the quantity needed to produce at the minimum of the Average Cost Curve. C. Market Demand is two or more times greater than the quantity needed to produce at the minimum of the Marginal Cost Curve. D. Insumountable technological difficulty associated with producing similar products serves as an effective Barrier to Entry. E. All of the Abovearrow_forwardFill in the blanks: 1. If the market price equals a firm’s break-even price, the firm earns its ________ profit. 2. For a monopoly, the firm’s demand curve is downward sloping, therefore to maximize its profit, the firm must produce where its marginal cost equals ________. 3. The competitive market’s demand curve is __________. sloping while that of the competitive firm is __________. 4. your firm has a price of $5, an average cost of $7, and an average variable cost of $4. in the short run, you should _________.arrow_forwardBarriers to entry may lead to: A. monopoly only B. perfect competition only C. oligopoly only D. monopoly or oligopolyarrow_forward
- Question 1a. With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. b. Explain how the perfectly competitive firm decides whether to operate or shut down in the short run. c. Explain why firms operating in monopolistically competitive markets probably will not earn an economic profit in the long run. d. Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition? Question 2a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. i. The cost of fuel used in its planes. ii. The rent on its Piarco headquarters. iii. The lease payments on its current inventory of jets. iv. The cost of peanuts it serves to passengers. v. The salary paid to the Chief Executive Officer. c.…arrow_forwardMatch the statements to complete a correct sentence A market structure with only one seller called Monopoly A market structure with few sellers called Oligopoly If the income elasticity of demand for bananas is 3.45, then banana's considered as Choose. The cost that is declining as output increase Choose. The quantity that consumer is willing and able to buy at a given price and time period is Quantity demanded The quantity that producer is willing and able to sell at a given price and time period is Quantity supplied The cost that remain unchanged regardless of of level of production called Choose. The time frame at which at least one input is fixed called Choose.. If the elasticity of demand is infinity, then the demand curve is Choose. If the elasticity of demand is zero, then the demand curve is Choose. The time frame at which all inputs are variables called Choose. If the cross elasticity of demand between good A and B is -2.7, then A and B are Choose.arrow_forwardA firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. pure monopoly. monopolistically competitive. oligopoly. b. Firms in this industry will likely earn: multiple choice 2 an economic loss. an economic profit. a normal profit. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will increase. economic losses will become smaller. economic profits will fall. normal profits will increase.arrow_forward
- When 40%<CR4<60%. a. effective competitive b. tight oligopoly c. effective monopoly d. loose oligopolyarrow_forwardA duopoly occurs when A. two producers of a particular good compete in the same market B. one producer of two goods sells the goods in a monopoly market C. several producers of two goods compete in a competitive market D. two producers of two different goods compete in an oligopoly marketarrow_forward1. compare the quantity and price of an oligopoly to those of a monopoly 2. compare the quantity and price of an oligopoly to competitive marketarrow_forward
- (a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus. How would you characterize the market for large passenger aircraft, monopoly, perfectly competitive, monopolistically competitive or Oligopoly? Please explain. Large passenger aircraft are defined as aircraft than can carry more than 150 passengers. (b) The market for telephone services has become more competitive over time with the advancement of technology in the industry. Technology in the aircraft manufacturing industry has also advanced significantly. Why hasn’t this improvement in technology led to an increase in competition (Boeing and Airbus have been the only manufacturers in this industry for many years)? Please explain.arrow_forward1. 90%>CR4>60%. a. effective monopoly b. effective competitive c. tight oligopoly d. loose oligopoly 2. An oligopolistic firm having lower costs than the other firms sets a lower price which the other firms have to follow. a. barometric price leadership b. stackelberg oligopoly c. price leadership by a low-cot firm d. price leadership by dominant firm 3. It means that one firm possesses a dominant market share and acts as a leader by setting price for the industry. a. barometric price leadership b. dominant firm c. price leadership d. none of the abovearrow_forwardAn industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions is called: a. monopoly. b. monopolistic competition. c. perfect competition. d. oligopoly.arrow_forward
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