Question
PLEASE HELP. MULTIPLE CHOICE. I Need the right answers please!!!for my grade
Consider a monopolistically competitive market that is in long-run equilibrium. Which of the following is true? All firms charge a price equal to marginal revenue. All firms make an economic loss. All firms charge a price equal to average total cost. All firms charge a price equal to marginal cost. are variable costs that increase average total cost. seldom provide consumers with valuable services. include marketing expenditures on advertising and packaging. always shift a firm's supply to the right. Which one of the following is a characteristic of oligopoly? Firms are price takers. Firms sell differentiated product. Firms are large in relation to the market size. There are no barriers to entry and exit. Which one of the following characterizes an oligopolistic market? Firms have to consider the behaviour of their rivals since their rivals are also large relative to the size of the market as a whole. Firms do not have to consider the behaviour of their rivals since they can act independently. Firms will earn zero economic profit in the long run. Firms always make economic loss with the free entry of potential firms. According to the kinked demand curve theory of oligopoly, each firm believes that if it raises its price, the government will impose a price ceiling. other firms will not raise their price. other firms will follow. None of the above. According to the kinked demand curve theory of oligopoly, at the quantity corresponding to the kink, the firm's marginal revenue curve is horizontal. average total cost curve is discontinuous. marginal cost curve is horizontal. marginal revenue curve is discontinuous. If the duopoly colludes and maximizes profit, each firm will produce as little output as possible. market marginal revenue will equal market marginal cost at the level of total output. each firm will produce an equal amount. All of the above. The reason why it is difficult to maintain a cartel for a long period of time is because each firm has an incentive to cheat. each firm has an incentive to collude. government will eventually make it illegal. each firm has an incentive to increase the market price. What are the four common features of all game theories? rules, strategies, profit, and outcome rules, strategies, payoffs, and outcome. costs, prices, profit, and strategies profit, sales, strategies, and rules A dominant strategy occurs when each player chooses to stay with the collusive agreement. you remain in cooperation until the other player cheats, and then you cheat forever. there is a clear strategy chosen by each player regardless of the other player's strategy. None of the above.
Explanation / Answer
6)d
7)b
8)a
9)c
10)a
11)d
12)b
13)b
14)c
15)b
