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_____ is legal and not frowned upon in the U.S.

Multiple Choice
Covert collusion
Cutthroat competition
Forming a cartel
None of these is true.
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Terms in this set (14)
_____ is legal and not frowned upon in the U.S.

Multiple Choice
Covert collusion
Cutthroat competition
Forming a cartel
None of these is true.
Cutthroat competition
Even with the big three textbook publishers (McGraw-Hill, Pearson, and Cengage) having a large market share, the textbook industry is still considered _____ because of the high level of competition that exists.

Multiple Choice
a cartel
a model of cutthroat competition
an example of open collusion
a price leadership model
a model of cutthroat competition
Which of the following statements is false?

Multiple Choice
Oligopolies are illegal in most states.
Most oligopolies engage in outright collusion.
Ford Motor Company is an oligopoly.
None of these is false.
Oligopolies are illegal in most states.
If an industry had a Herfindahl-Hirschman Index of 10,000, how many firms are in the industry?

Multiple Choice
1
10
1,000
10,000
1
The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is

Multiple Choice
monopoly
perfect competition.
oligopoly.
monopolistic competition.
oligopoly
Which of the following statements is true?

Multiple Choice
Most oligopolies in the U.S. take the form of a cartel.

Covert collusion has probably never taken place among American oligopolists.

The cartel and the cutthroat competitor are on opposite ends of the competitive spectrum.

None of these is true.
The cartel and the cutthroat competitor are on opposite ends of the competitive spectrum.
The greater the barriers to entry into an industry are

Multiple Choice
the more elastic will be the demand curves for existing firms.
the more likely that existing firms will enjoy large profits in the long run.
the lower will be short-run profits.
the lower will be the average cost curves of existing firms.
the more likely that existing firms will enjoy large profits in the long run.
Oligopoly is characterized by

Multiple Choice
identical products only.
differentiated products only.
high barriers to entry.
many firms.
high barriers to entry
The demand curve facing an oligopoly will be less elastic

Multiple Choice
the larger its share of the market and the more differentiated the product.
the smaller its share of the market and the more differentiated the product.
the larger its share of the market and the less differentiated the product.
the smaller its share of the market and the less differentiated the product.
the larger its share of the market and the more differentiated the product.
The largest firm in Industry J has a 90 percent market share, while the remaining ten firms each has a one percent share. The largest firm in industry K has a 80 percent market share, while the other two firms each has a 10 percent share. Which of the following statements is true?

Multiple Choice
Industry J has a higher concentration ratio than industry K.
Industry K has a higher concentration ratio than industry J.
The industries have the same concentration ratio.
None of these is true.
Industry J has a higher concentration ratio than
Using concentration ratios, which is the more concentrated industry? Multiple Choice Industry X with a concentration ratio of 80. Industry Y with a concentration ratio of 95. Both industries have the same concentration ratio of 100. There is no way to determine which industry has the higher concentration ratio.Industry Y with a concentration ratio of 95. CorrectThe graph shown here is that of Multiple Choice either a colluding oligopolist or an oligopolist engaged in cutthroat competition. neither a cutthroat oligopolist nor a colluding oligopolist. a cutthroat oligopolist. a colluding oligopolist.a cutthroat oligopolist.The price charged by this profit-maximizing firm is about _____ and its output is about _____. Multiple Choice $45; 9 $55; 11 $65; 9 $65; 11$65; 9A low concentration ratio would most likely indicate that the industry resembles the behavior of Multiple Choice a cartel. a monopolistic competitor. a monopoly. an oligopoly.a monopolistic competitor.