Four automobile manufacturers account for 92 percent of total sales in their industry. They experience large economies of scale and favor tariffs on imported automobiles. What additional information is needed to classify this industry as a collusive oligopoly?
a. the market share for each firm in the oligopoly
b. the existence of a cartel agreement between them
c. evidence that they have zero long-run economic profits
d. a high Herfindahl-Hirshman Index for their industry
b. the existence of a cartel agreement between them
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If a competitive firm's marginal cost curve is U-shaped then
A) its short run supply curve is U-shaped too B) its short run supply curve is the downward-sloping portion of the marginal cost curve C) its short run supply curve is the upward-sloping portion of the marginal cost curve D) its short run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short run average variable cost curve E) its short run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short run average total cost curve
A monopolistically competitive firm is currently earning a positive economic profit. If other firms enter the market, we would expect that the added competition will cause this firm to adjust its output such that it
a. will operate closer to its efficient scale. b. will operate further from its efficient scale. c. will no longer be at its efficient scale. d. might move either closer to or further from its efficient scale.
During the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?
What will be an ideal response?
A monopolist is defined as
A. a single producer of a good or service for which there is no close substitute. B. a producer of a good or service that is expensive to produce, requiring large amounts of capital equipment. C. a large firm, making substantial profits, that is able to make other firms do what it wants. D. a firm with many business establishments located across the nations.