911. The Kinked Demand curve theory assumes ?
A. Firms cooperate
B. Firms act as part of cartel
C. Firms are competitive
D. Firms are not profit maximisers
912. In the Kinked demand curve theory ?
A. There is a kink in the marginal cost curve
B. Demand is price inelastic
C. Demand is price elastic
D. non-price competition is likely
913. In a cartel ?
A. Firms compete against each other
B. Price wars are common
C. Firms use price to win market share from competitors
D. Firms collude
914. A market structure in which many firms sell products that are similar but not identical is known as ?
A. monopolistic competition
C. perfect competition
915. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry.
916. When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?
A. more than the level produced by a monopoly and less than the level produced by a competitive market
B. less than the level produced by a monopoly and more than the level produced by a competitive market
C. less than the level produce by either monopoly or a competitive market
D. more than the level produced by either monopoly or a competitive market
917. As the number of sellers in an oligopoly increases ?
A. output in the market tends to fall because each firm must cut back on production
B. the price in the market moves further from marginal cost
C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
D. The price in the market moves closer to marginal cost
918. Many economics argue that resale price maintenance ?
A. has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?
B. is price fixing and, therefore is prohibited by law
C. is price fixing and therefore, is prohibited by law and enhances the market power of the producer
D. enhances the market power of the producer
919. When a tax is collected from the buyers in a market, ?
A. the tax burden falls most heavily on the buyers.
B. the buyers bear the burden of the tax
C. the sellers bear the burden of the tax
D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers
920. A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
A. falls more heavily on sellers
B. falls entirely on sellers
C. falls more heavily on buyers.
D. is evenly distributed between buyers and sellers.