Each firm in a cartel has an incentive to chisel because market price exceeds
a. marginal cost.
b. average cost.
c. average variable cost.
d. average fixed cost.
a
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Which type of market structure has the fewest number of firms?
If all existing firms and all potential firms have the same cost curves, there are no inputs in limited quantities, and the market is characterized by free entry and exit, then the long-run market supply curve
a. is horizontal and equal to the minimum of long-run marginal cost for each firm. b. must slope downward. c. must slope upward. d. is horizontal and equal to the minimum of long-run average cost for each firm.
The U.S. Internet search market:
A. is best characterized by pure competition. B. is dominated by Google, which controls about 70 percent of the market. C. has a few prominent firms that each possesses a relatively equal market share. D. has no barriers to entry.