Long-run equilibrium for a monopolistic competitor is characterized by
A. marginal cost pricing.
B. economic profits.
C. too few firms in the industry.
D. a price exceeding marginal cost.
Answer: D
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If an industry has a four-firm concentration ratio equal to one hundred percent, then it is definitely the case that the industry is
A) a monopoly. B) perfectly competitive. C) monopolistically competitive. D) either a monopoly or an oligopoly.
The goal of antitrust acts is to
A. protect consumers. B. protect firms. C. limit profits of companies. D. reduce competition.
If the price of chicken rises from $1.25 per pound to $1.75 per pound, if the demand curve is consistent with the law of demand, then the quantity of chicken demanded would be predicted to go from
A. 100 pounds to 125 pounds per day. B. 100 pounds to 75 pounds per day. C. 100 pounds to 100 pounds per day, because the price of chicken does not affect the quantity demanded. D. 100 pounds to 0 pounds per day, because consumers would stop purchasing chicken at a price above $1.25 per pound.
A seller in a competitive market can
a. sell all he wants at the going price, so he has little reason to charge less. b. influence the market price by adjusting his output. c. influence the profits earned by competing firms by adjusting his output. d. All of the above are correct.