Principal of Microeconomic

5) Monopolies, oligopolies, and monopolistic competitive industries all A) earn positive profits in the long run. B) have market power. C) are completely unconstrained in their pricing. D) raise price and quantity over what would occur in perfect competition in order to maximize their profits. Answer:B 7)A monopoly is an industry with A)a single firm in which the entry of new firms is blocked. B)a small number of firms each large enough to impact the market price of its output. C)many firms each able to differentiate their product. D)many firms each too small to impact the market price of its output. Answer:A 8)An oligopoly is an industry market structure with A)a single firm in which the entry of new firms is blocked. B)a small number of firms each large enough to impact the market price of its output. C)many firms each able to differentiate their product. D)many firms each too small to impact the market price. Answer:B 9) Monopolistic competition is an industry market structure with ...

1) Assume firms in an industry break even. New investors ________ attracted to the industry and current ones ________ running away from it. A) are not; are not B) are not; are C) are; are not D) are; are Answer:A 2) Firms that are "breaking even" are A) earning zero economic profits. B) earning less than a normal rate of return. C) shutting down in the short run. D) All of the above are correct. Answer:A 3) Firms earning a profit will want to ________ their profits in the short run while firms suffering losses will want to ________ their losses. A) maximize; maximize B) maximize; minimize C) minimize; maximize D) minimize; minimize Answer:B 4)In the short run, A)all firms that earn a loss will shut down. B)if current firms are earning a profit, new firms will enter the industry. C)firms act such that they minimize losses or maximize profits. D)All of the above are correct. Answer:C Refer to the information provided below in Figure 9.1 to answer the questions that follow. 25) ...