Which of the following would be associated with firms that have market power? Select all that...
Which of the following would be associated with firms that have market power?
Select all that apply.
Select one or more:
a. Few Firms
b. Elastic Demand
c. Many Firms
d. Collusion among firms.
e. Inelastic Demand
f. Competition among firms.
Homework Answers
A. Few firm
D. Collusion among firms
E. Inelastic demand
Reason- In all these three cases firms have market power.
When there are few firms or oligopoly, these firms have significant power as there is barriers to entry in the market.
When firms collude they can act as a monopoly and charge higher price.
In Inelastic demand firms can charge higher price without reducing the quantity as the demand is inelastic. So their revenue increases.
Add Answer to:
Which of the following would be associated with firms that have
market power?
Select all that...
Which of the following correctly describes how a firm's monopoly power would decrease? A. If the production process in...
Which of the following correctly describes how a firm's monopoly power would decrease? A. If the production process includes more fixed inputs, the firm's demand will become more elastic. B. If the number of firms increases, the firm's demand will become more inelastic. C. If the market demand curve becomes more elastic, the firm's demand curve will become more elastic. D. If the cost of production increases, the firm's demand will become more elastic. E. If other firms are reluctant...
Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching...
Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching suppliers are low B. the suppliers sell highly differentiated products C. there are many other buyers in the market D. they purchase a relatively small quantity of product If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: A. retain the same elasticity of demand B. more...
Which is NOT a characteristic of monopolistic competition? A. few firms in the industry B. independence...
Which is NOT a characteristic of monopolistic competition? A. few firms in the industry B. independence of each firm's decisions C. lack of collusion among firms D. small share of market to each firm
17. Market power a. is the capability to increase price without losing all sales. b. exists...
17. Market power a. is the capability to increase price without losing all sales. b. exists whenever the firm faces a downward-sloping demand curve. c. is greater the less elastic is demand. d. is smaller the more positive is the cross-price elasticity of demand. e. all of the above. 18. A monopoly is maximizing short-run profit at a point on demand where demand elasticity is -3. What is the Lerner index? a. 3 b. 1/3 c. 33.3 d. -3/4 19....
Which one of the following is not a condition of perfect competition? a. All goods sold...
Which one of the following is not a condition of perfect competition? a. All goods sold in the market are identical b. Producers can freely enter or exit the market c. Buyers and sellers have perfect information d. Numerous small buyers and sellers e. Firms’ production functions display increasing returns . In a perfectly competitive market, every individual seller is a price taker, which means that a. they face a perfectly inelastic demand curve. b. any seller that raises its...
Answer the following questions. 1. Which of the following is a key difference between firms in...
Answer the following questions. 1. Which of the following is a key difference between firms in a perfectly competitive industry and firms in a monopolistically competitive industry? (Choose only one) a) A monopolistically competitive firm does not face entry from other firms. b) A monopolistically competitive firm does not have the exact same product as other firms. c) A monopolistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue. d) A monopolistically...
In which of the following types of markets does a single firm have the most market...
In which of the following types of markets does a single firm have the most market power? Multiple Choice Perfect competition. Monopolistic competition. Oligopoly Monopoly A perfectly competitive firm is a price taker because Multiple Choice The price of the product is determined by many buyers and sellers It has market power. Market supply is upward-sloping. Its products are differentiated. Competitive firms cannot individually affect market price because Multiple Choice There is an infinite demand for their goods. Demand is...
Which of the following is not characteristic of monopolistic competition? a. Some market power. b. Many...
Which of the following is not characteristic of monopolistic competition? a. Some market power. b. Many firms in an industry. c. Firms have zero control over price. d. Low concentration ratios.
Which of the following can create monopolies? Instructions: You may select more than one answer. Click...
Which of the following can create monopolies? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. ? Scarce resources ? Government intervention 7 Economies of scale ? Aggressive business tactics Governments create monopolies through intellectual property rights such as patents and copyrights because: Othey want firms to make profits. they do not understand the losses due to monopoly. they do not...
A few sellers may behave as if they operate in a perfectly competitive market if the...
A few sellers may behave as if they operate in a perfectly competitive market if the market demand is: Select one: a. highly inelastic b. very elastic. c. unitary elastic d. composed of many small buyers.
17. Market power a. is the capability to increase price without losing all sales. b. exists whenever the firm faces a downward-sloping demand curve. c. is greater the less elastic is demand. d. is smaller the more positive is the cross-price elasticity of demand. e. all of the above. 18. A monopoly is maximizing short-run profit at a point on demand where demand elasticity is -3. What is the Lerner index? a. 3 b. 1/3 c. 33.3 d. -3/4 19....
In which of the following types of markets does a single firm have the most market power? Multiple Choice Perfect competition. Monopolistic competition. Oligopoly Monopoly A perfectly competitive firm is a price taker because Multiple Choice The price of the product is determined by many buyers and sellers It has market power. Market supply is upward-sloping. Its products are differentiated. Competitive firms cannot individually affect market price because Multiple Choice There is an infinite demand for their goods. Demand is...
Which of the following can create monopolies? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. ? Scarce resources ? Government intervention 7 Economies of scale ? Aggressive business tactics Governments create monopolies through intellectual property rights such as patents and copyrights because: Othey want firms to make profits. they do not understand the losses due to monopoly. they do not...
A few sellers may behave as if they operate in a perfectly competitive market if the market demand is: Select one: a. highly inelastic b. very elastic. c. unitary elastic d. composed of many small buyers.
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 8 minutes ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 13 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 28 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 23 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 36 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 44 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 43 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 46 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 47 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 51 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 1 hour ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 1 hour ago