Nonprice competition refers to:
A) low barriers to entry.
B) product development, advertising, and product packaging.
C) the differences in information which consumers have regarding various products.
D) an industry or firm in long-run equilibrium.
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?
A) Subway Sandwiches B) Pittsburgh Plate Glass C) Ford Motor Company D) Kaiser Aluminum.
Oligopoly is more difficult to analyze than other market models because:
A) the number of firms is so large that market behavior cannot be accurately predicted.
B) the marginal cost and marginal revenue curves of an oligopolist play no part in the determination of equilibrium price
C) of mutual interdependence and the fact that oligopoly outcomes are less certain than in other market models.
D) unlike the firms of other market models, it cannot be assumed that oligopolists are profit maximizers.
relationship between a monopolistic competitor's marginal revenue curve and its demand curve is that the
a. two curves coincide and are horizontal at the market price.
b. marginal revenue curve lies above the demand curve and the demand curve is horizontal at
the market price.
c. marginal revenue curve lies below the demand curve and both are downward sloping.
d. two curves coincide and are downward sloping to the right.
e. marginal revenue curve lies above the demand curve and both are downward sloping.
In long-run equilibrium, the monopolistic competitor will most likely
a. be earning zero economic profit.
b. be operating at the lowest point on its average total cost curve.
c. be able to sell all it produces at the current price.
d. charge a price that is equal to marginal cost.
. The Sherman Act was designed to:
A) exempt commercial banks from the antitrust laws.
B) make interlocking directorates legal.
C) prohibit misleading and antisocial advertising.
D) make monopoly and acts that restrain trade illegal.
Which of the following gave the Federal Trade Commission responsibility to protect the public
against false and misleading advertising?
A) Celler-Kefauver Act of 1950 C) Clayton Act of 1914
B) Wheeler-Lea Act of 1938 D) Sherman Act of 1890
. A firm is likely to be a natural monopoly:
A) when the demand for its product or service is inelastic.
B) if it is producing an inferior good.
C) if economies of scale are experienced over the full range of output.
D) because government grants it an exclusive franchise.
. KWTX was just informed that its television license is being revoked. Which agency initiates the revocation?
12. Which of the following Independent Regulatory Agencies regulates advertising?
You ordered a turtleneck sweater from Eddie Bauer and were to receive free shipping. You placed your order about 8 weeks ago, and
still have not received your merchandise. Which of the following IRCs would you contact for relief?
Study all the IRCs and be familiar with what they regulate.