Which list has market structures in the correct order from the most to the least market power?
a) Oligopoly, perfect competition, monopolistic competition, monopoly
b) Monopoly, oligopoly, monopolistic competition, perfect competition
c) Perfect competition, oligopoly, monopolistic competition, monopoly
d) Monopoly, monopolistic competition, oligopoly, perfect competition
Answer: b) Monopoly, oligopoly, monopolistic competition, perfect competition
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Open market operations refer to the purchase or sale of ________ to control the money supply
A) corporate bonds and stocks by the Federal Reserve B) U.S. Treasury securities by the U.S. Treasury C) U.S. Treasury securities by the Federal Reserve D) corporate bonds and stocks by the U.S. Treasury
If the production possibilities frontier is linear, then
A) opportunity costs are increasing as more of one good is produced. B) opportunity costs are decreasing as more of one good is produced. C) opportunity costs are constant as more of one good is produced. D) it is easy to efficiently produce output.
In a free market for depletable natural resources, any shortage where there is an excess of quantity demanded over quantity supplied must be
A. temporary. B. due to a price floor. C. the result of discovery of new deposits of the resources. D. due to a price ceiling.
If a monopolist's marginal cost equals its marginal revenue
A. output should be raised. B. output should be reduced. C. production is at its most efficient level. D. profits are maximized or losses are minimized.