Question

__________ is not a problem for stability within cartels.

a.	Enforcing output quotas	b.	Control over entry
c.	Good customer relations	d.	Cheating

Which of the following sizes of the market make market coordination easier?

a.	Many smaller firms	b.	More than four firms
c.	A few firms of same size	d.	One large and many small firms

Which of the following characterizes a monopolistically competitive market?

a.	Many large firms	b.	Many small firms
c.	One firm	d.	A few large firms

Monopolistic competition is which of the following types of markets?

a.	A market dominated by a large firm	b.	A market that produces a differentiated product
c.	A market in which firms are price takers	d.	A market that produces a homogeneous product

Answer 1

1 answer is B.... control over entry

In case of cartel there is only few firms. So there is no problem of entry of firms. No entry takes place.

2answer is ...C

Because when in the economy a few frims in the same size little difference in the cost and output. So price and quantity of equilibrium almost constant.

And all coordinate each other bases of price, quantity and profit share in the market.

3answer is ...D... a few large firm

Because free entry exit in the monopolistic market structure.

Cost reduction competition so production of large scale.

And sale the large scale production and little differenceate products exist advertisement cost.

4answer is ....B

In the monopolistic structure few large scale firms in the market .

Production of substitute good so little differenceate products.

Example is ....few chocolate and chips company in tha market.

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