Monopolistic Competition And Oligopoly

In the short-run, a profit-maximizing monopolistically competitive firm sets its price:

Concentration ratios may be inaccurate indicators of the degree of monopoly power in an industry because:

The more elastic a monopolistic competitor's long-run demand curve, the:

As a general rule, oligopoly exists when the four-firm concentration ratio:

Inefficiencies occur under monopolistic competition because:

Nonprice competition refers to:

The mutual interdependence that characterizes oligopoly arises because:

A significant benefit of monopolistic competition compared with pure competition is:

Clear-cut mutual interdependence with respect to the price-output policies exists in:

The kinked-demand curve of an oligopolist is based on the assumption that:

In the short-run, the price charged by a monopolistically competitive firm attempting to maximize profits:

For a monopolistically competitive firm in long-run equilibrium:

T/F: Homogenous oligopolists tend to advertise more than do differentiated oligopolists.

The monopolistic competition model assumes that:

T/F: The excess capacity problem associated with monopolistic competition implies that fewer firms could produce the same industry output at a lower total cost.

The four-firm sales concentration ratio for an industry measures the:

Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a monopolistic competitor?

T/F: The demand curve of a monopolistically competitive firm is more elastic than that of a pure monopolist.

The restaurant, legal assistance, and clothing industries are each illustrations of:

The monopolistically competitive seller's demand curve will become more elastic the:

T/F: Mutual interdependence means that oligopolistic producers rely on price competition in determining their shares of the total market for their product.

If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that:

T/F: Oligopolists use limit pricing to maximize short-run profits.

Oligopoly is difficult to analyze primarily because:

The price elasticity of a monopolistically competitive firm's demand curve varies:

Aluminum competes with copper in the market for power transmission lines. This illustrates:

T/F: Generally speaking, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude.

If competing oligopolists completely ignore oligopolist X's price changes, then X's:

Nonprice competition refers to:

In long-run equilibrium monopolistic competition entails:

If an oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:

T/F: Firms are more likely to collude when the economy is in a recession.

Which of the following industries is an illustration of homogeneous oligopoly?

In which of these continuums of degrees of competition (highest to lowest) is oligopoly properly placed?

T/F: The larger the number of firms and the less the degree of product differentiation, the greater will be the elasticity of a monopolistically competitive seller's demand curve.

Monopolistic competition means:

Concentration ratios:

Which of the following statements is correct?

Homogeneous oligopoly exists where a small number of firms are:

T/F: Monopolistically competitive sellers produce efficiently because they obtain only normal profits in the long run.

The economic inefficiencies of monopolistic competition may be offset by the fact that:

T/F: The monopolistically competitive seller maximizes profits by equating price and marginal cost.

Which of the following is the best example of oligopoly?

Prices are likely to be least flexible:

In the long run, new firms will enter a monopolistically competitive industry:

T/F: Two industries that have the same 4-firm concentration ratio can have significantly different Herfindahl indexes.

In the long-run, economic theory predicts that a monopolistically competitive firm will:

Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?

In monopolistically competitive markets resources are:

Monopolistically competitive and purely competitive industries are similar in that: