IO Quiz

A monopsony is a market condition in which there are numerous suppliers and only one buyer or a small number of buyers.

• TRUE

• FALSE

In the monopolistic competition market, entry barriers are lower than in the oligopoly market

• TRUE

• FALSE

The presence of market power is one of the conditions for the implementation of price discrimination.

• TRUE

• FALSE

A profit-maximizing monopolist operates on an inelastic demand segment.

• TRUE

• FALSE

Barriers that are embedded in the fundamental market conditions and that firms can not control are called exogenous.

• TRUE

• FALSE

If consumers expect intertemporal price discrimination in the durable goods market, they will reduce the consumption of goods today.

• TRUE

• FALSE

Resale price maintenance refers to any attempt by a manufacturer to control the price set by a dealer reselling the product.

• TRUE

• FALSE

For a consumer, price discrimination of the 1st degree is more advantageous if compared with price discrimination of the 2nd degree, since in this case the consumer surplus is greater.

• TRUE

• FALSE

As the number of firms grows, the stability of the cartel agreement decreases.

• TRUE

• FALSE

The higher the entry barriers, the more difficult it is to maintain collusion.

• TRUE

• FALSE