Reading 9: The Firm and Market Structures

Which of the following market structures is characterized by a large number of firms producing identical products?

In a perfectly competitive market, the demand curve faced by an individual firm is best described as:

A profit-maximizing firm in any market structure will expand production until:

Under perfect competition, a firm's short-run supply curve is represented by:

In the long run, firms in a perfectly competitive market will earn:

A firm in perfect competition should shut down in the short run if price is less than:

Which of the following is a key characteristic of monopolistic competition?

In monopolistic competition, the demand curve faced by each firm is:

Long-run equilibrium in monopolistic competition results in:

Advertising expenses are typically high for firms in monopolistic competition because:

Which market structure is characterized by a few firms and high interdependence?

The kinked demand curve model of oligopoly assumes that:

In the Cournot duopoly model, each firm determines its profit-maximizing quantity assuming that:

A Nash equilibrium is reached when:

In the Stackelberg dominant firm model, the market price is determined by:

Which of the following factors makes a collusive agreement in an oligopoly more likely to be successful?

A monopolist maximizes profit by producing the quantity where:

Which of the following is a necessary condition for a monopolist to practice price discrimination?

Compared to a single-price monopoly, perfect price discrimination results in:

A natural monopoly is characterized by:

Regulating a natural monopoly by forcing it to set price equal to marginal cost usually requires:

The N-firm concentration ratio is calculated as:

Calculate the 4-firm concentration ratio for an industry with five firms having market shares of 30 percent, 20 percent, 15 percent, 10 percent, and 25 percent.

Which of the following is a limitation of the N-firm concentration ratio?

The Herfindahl-Hirschman Index (HHI) is calculated as:

If two firms in an industry with market shares of 25 percent and 15 percent merge, the HHI will:

One limitation shared by both the N-firm concentration ratio and HHI is that they:

Which market structure generally has the lowest barriers to entry?

An industry with many firms, differentiated products, and some pricing power is best classified as:

A market with a single seller and no close substitutes is a:

In the long run, a firm in perfect competition produces at a quantity where:

Which of the following is true about the supply function in an oligopoly?

If a monopolist engages in rent seeking, the social cost of monopoly:

A permanent increase in demand in a perfectly competitive industry will eventually result in:

In the short run, if a perfectly competitive firm's marginal revenue is less than its marginal cost, it should:

Product innovation in monopolistic competition allows firms to:

Over time, the market share of a dominant firm in an oligopoly is likely to:

A firm operating in an oligopoly with a kinked demand curve believes that if it raises its price:

In the context of the kinked demand curve model, the marginal revenue curve:

According to the Cournot model, as the number of firms in an oligopoly increases, the equilibrium market price:

Under the Stackelberg model, the 'leader' firm:

Collusive agreements in an oligopoly are most likely to be successful when:

In the Dominant Firm Model, the dominant firm calculates its demand by:

Average cost pricing regulation for a natural monopoly typically forces the firm to:

Compared to perfect competition, a monopoly creates a deadweight loss because:

If a market has an HHI of 0.1950, this indicates:

Which pricing strategy allows a monopolist to capture more consumer surplus?

Game theory is most useful for analyzing which market structure?

In the short run, a firm in perfect competition will earn a normal profit when:

Which of the following is true regarding the long-run supply curve for a firm in perfect competition?