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For more classes visit www.snaptutorial.com A purely- or perfectly-competitive firm would be characterized by which of the following? 2. For a purely-competitive firm, price must be 3. What will excessive or economic profits induce for a firm in any industry structure? 4. A pure-monopoly firm’s demand curve is also the market demand curve. This kind of firm may successfully engage in price discrimination to increase its total profit if it 5. Oligopolies are characterized by a small number of firms where the top three firms hold the majority of the market. If in an oligopoly market, firm A ia almost twice as big as firm B and firm C then 6. In a monopolistic competiton industry, if one firm appreciably increased its price from the existing equilibrium price, which of the following outcomes would most likely ensue? 7. Which factor charcterizes the competitive relationship between firms in an oligopoly market structure? 8. Unregulated (natural) monopolies maintain their status through a variety of measures. Whether any particular measure can effectively constrain new firms from entering the market depends on 9. Regulated monopolies are empowered by public authority for which specific reason? 10. Using a significantly greater economy of scale—with attendant lower, long-run average total costs—to restrict the market entry of new competitors 11. In technology-intensive oligopolies—charcterized by dynamically evolving product design—restricting the entry additional firms is 12. Whether the market structure is monopolistic or oligopolistic, a firm may increase consumer demand for its product as an overall portion of market share if 13. One difference between firms already established in a monopolistic competition industry and those attempting to enter it is that 14. An average firm in an industry characterized by a homogeneous product, relatively low barriers to entry, and a low concentration ratio 15. A monopolistic firm may operate in a relatively mature market with little likelihood for significant change in technology or process efficiencies. To maximize its profits, such a firm might 16. Production differentiation can effectively be achieved by 17. While mass retail industries have one or several dominat producers, smaller firms have a limited set of nonpricing options. The most feasible of these inlude 18. In monopolistic competitoninductries, effective product differentiation is illustrated by 19. Differrntiation strategies vary in degree of effectiveness form one type of market structure to another. For firms other than perfect competition 20. If a firm’s industry developed from a monopolistic competiton into an oligopolistic structure, the firm would discover that 21. A firm can increase both profit and per-unit profit margin by lowering production costs. To make this a long-term outcome, the firm should 22. A firm’s cost-reduction strategies may span multiple stages, from acquisition of production input factors to product service and maintenance. When seeking to lower cost in the short term, firms should 23. Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by
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