Answer to Question #184999 in Macroeconomics for James

Question

QUESTION 22

Oligopoly arises when a small number of large firms:

1. Exit the market.
2. Enter the market.
3. Have most of the sales in an industry.
4. Have only a minority of the sales in an industry.
5. All of the above.

QUESTION 23

We typically characterize oligopolies by:

1. Mutual independence.
2. Mutual interdependence.
3. Mutual exclusivity.
4. Independent decision-making.
5. All of the above.

QUESTION 24

By acting together, oligopolistic firms can:

1. Charge a higher price.
2. Hold down industry output.
3. Divide the profit among themselves.
4. All of the above.
5. None of the above.

QUESTION 25

Because cartel agreements provide evidence of collusion:

1. Firms frequently present them in court to prove the existence of a contract.
2. Firms frequently use them.
3. They are rare in the U.S.
4. They are common in the U.S.
5. They only can exist in California.

Answer 1

Question 22.

Answer.(3)

Oligopoly arises when a small number of large firms have most of the sales in an industry.

Question 23.

Answer. (2)

We typically characterize oligopolies by mutual interdependence

Question 24.

Answer.(4)

By acting together, oligopolistic firms can....All the above( charge a higher price, hold down industry output,divide the profit among themselves)

Question 24.

Answer.(3)

Because cartel agreements provide evidence of collusion, they are rare in the U.S