Unit 4: Imperfect Competition

In this market structure there is only one seller with a unique product

• monopoly
• perfect competition
• monopolistic competition
• oligopoly

The airline industry is most likely in the market structure called

• perfect competition
• oligopoly
• monopolistic competition
• monopoly

Price fixing and collusion often occur in this type of market structure

• monopoly
• oligipoly
• perfect competition
• monopolistic competition

In this market structure there are many buyers and sellers with identical products

• perfect competition
• monopolistic competition
• monopoly
• oligopoly

One firm dominates the market is known as a:

• Monopoly
• Oligopoly
• Monopolistic Competition
• Pure Competition

Many companies selling very similar, but not identical products is known as:

• Monopoly
• Oligopoly
• Monopolistic Competition
• Pure Competition 

Which of the following best characterizes the firms in an oligopoly industry?

• Firms can easily enter the industry when profits are high.

• There are more firms than in a monopolistically competitive industry.

• They are independent.

• They always collude to increase profits.

• They use strategic decision making.

Total revenue is maximized where:

• MR = 0

• MR = MC

• TP = peak

• P = ATC

• P = MC

A profit maximizing monopoly will maximize profit where:

• MR = MC

• MR = ATC

• MR = min ATC

• P = ATC

• P = MC

Why can monopolies make long run positive economic profit?

• High barriers to entry

• They don't. Monopolies make a normal profit in the long run.

• Low barriers to entry

• Differentiated products

• Many sellers