Q1. Which of the following identifies a differnece between monopolies and cartel
ID: 1164680 • Letter: Q
Question
Q1. Which of the following identifies a differnece between monopolies and cartels in olipogoly?
A. they are identical in their profit-maximizing decision-making.
B. om=nopolies are always illegal in the U.S. but cartels are not
C. cartels have competition in the market while monopolies do not.
Q2. The reason why so few fiems exists in an oligopoly type market is?
A. legal and ither barriers to entry reduce firm entry into the industry
B. firms have to sell commodities
C. cartels reduce the number of competitors
Q3.The Major difference between monopolistic competion and perfect competition is?
A. firms in perfect competiton have to sell a commodity, firms in monopolistic competition cannot sell a commodity.
B. low barriers to entry isperfect competion, but not in monopolistic competiton
C. many firms in perfect competition, but few firms in monopolistic competiton.
Explanation / Answer
a) "A"
Monopolies and Cartel behave the same in the market, they maximize the profit in the same manner by matching their marginal cost and marginal revenue.
b) "A"
Legal and other barriers reduce the number of firms in the market.
c) "A"
Firms in the perfect competition have to sell the commodity at the market price but firms in the perfect market condition don't have to sell at the market price.
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