Between World War II and the 1970s, three firms—General Motors, Chrysler, and Ford—produced and sold nearly all the output of the U.S. auto industry. These three firms had
A) an oligopoly.
B) monopolistic competition.
C) colluded.
D) a pure monopoly.
Answer: A
You might also like to view...
The above figure shows the demand and cost curves for a monopolist. What is the maximum economic profit this firm can make?
A) zero B) $400 C) $100 D) $200
When a firm is experiencing economies of scale, it will:
a. underuse a larger plant size than is indicated by short-run efficiency concerns. b. underuse a smaller plant than is indicated by short-run efficiency concerns. c. overuse a larger plant size than is indicated by short-run efficiency concerns. d. overuse a smaller plant size than is indicated by short-run efficiency concerns. e. produce at the minimum short-run and long-run average costs.
Critics of the minimum wage argue that as an antipoverty device it is "poorly targeted." By this they mean that:
A. the minimum wage only applies to a small percentage of the labor force. B. many who benefit from the minimum wage are teenagers or not poor. C. the government has been unable to enforce the minimum wage. D. the average level of wages in the economy is considerably higher than the minimum wage.
Refer to the above table for smartphones. Suppose the demand for smartphones rises because there are more Wifi hot spots. The new equilibrium price will be
A. $275. B. more than $275. C. $200. D. impossible to be determined given the information.