ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 15

22) A monopolistically competitive industry combines elements of
both competition
and monopoly. The monopoly element results from: A. product
differentiation. B.
the likelihood of collusion. C. mutual interdependence in decision
making. D. high
entry barriers.
23) The term oligopoly indicates: A. a few firms producing either a
differentiated
or a homogeneous product. B. a one-firm industry. C. an industry
whose four-firm
concentration ratio is low. D. many producers of a differentiated
product.
24) Suppose that an industry is characterized by a few firms and price
leadership.
We would expect that: A. price would exceed both marginal cost and
average
total cost. B. price would equal marginal cost. C. marginal revenue
would exceed
marginal cost. D. price would equal average total cost.
25) When economists view technological change as internal to the
economy, they
mean that it: A. arises deliberately from the profit motive and
competition. B.