Question

When the number of firms in a market is small, Select one: a. firms generally organise...

When the number of firms in a market is small,

Select one:

a. firms generally organise as a cartel

b. firms are less concerned about the behaviour of competitors, since there is always sufficient demand to keep all firms happy

c. firms are guaranteed a positive economic profit

d. firms must generally consider how competing firms respond to their decisions

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. D with a few firms in the market,the market behaves like a Oligopoly market. Here their exists barriers to entry fir new firms which can be both natural and artificial barriers. The characteristic of this market is that all the firms here are interdependent which means they cannot act independently of each other. They have to consider how competing firms will respond to their decisions,while taking them.This is because there are small number of firms with ecah firm having considerable influence over market.

Firms also generally resort to forming cartel but many times that is strictly prohibited by the government by various laws.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Monopolistic competition in a market is characterized by: Select one: a. many firms, downward-sloping demand curves,...
Monopolistic competition in a market is characterized by: Select one: a. many firms, downward-sloping demand curves, and zero economic profit in the long run. Monopolistic competition is a: Select one: a. group of suppliers that try to act as if they were a monopoly. b. market that is dominated by a small number of firms. c. market with a large number of firms selling similar but not identical products. d. group of suppliers that try to act as if they...
Which of the following statements is correct? Select one or more: 1. When a firm’s marginal...
Which of the following statements is correct? Select one or more: 1. When a firm’s marginal revenue equals its marginal costs, then its economic profits must be zero. 2. In the short run, a firm will experience diminishing marginal returns because firms have fixed factors of production. 3. A monopoly firm should always charge the highest possible price in order to earn the highest profits. 4. A firm's accounting profits will never be less than its economic profits. 5. A...
1. A distinguishing characteristic of monopolistically competitive market is A. price discrimination B. differentiated products C....
1. A distinguishing characteristic of monopolistically competitive market is A. price discrimination B. differentiated products C. having long-run economic profits D. having short-run economic losses 2. The Nash equilibrium in a duopoly market would result in A. An equilibrium price higher than the "monopoly price" but a lower equilibrium quantity compared to the " monopoly quantity" B. An equilibrium price higher than a competitive price but a lower equilibrium quantity compared to a monopoly quantity C. an equilibrium quantity higher...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises the market price above marginal cost and produces a smaller output.             b. it produces a greater output but charges a lower price.             c. it produces the same quantity while charging a higher price.             d. all surplus goes to the producer.             e. it leads to a smaller producer surplus but greater consumer surplus. 2. The demand curve of a monopolist typically...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run. b.it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. c.there are only a few other very large firms selling similar products. d.it can sell all it can produce at any price it chooses....
1. When total revenue is less than variable costs in the short run, what will a...
1. When total revenue is less than variable costs in the short run, what will a firm in a competitive market do? Select one: a. It will continue to operate as long as average revenue exceeds marginal cost. b. It will shut down. c. It will continue to operate as long as average revenue exceeds average fixed cost. d. It will always exit the industry. 2. Consider a monopoly that is able to practice perfect price discrimination. Which of the...
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following...
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase? A) an increase in the price of soybeans B) a decrease in the price of corn C) an increase in the demand for corn D) an increase in the price of soybean seeds E) an increase in the price of tomatoes 2) For a perfectly competitive firm, which of the following is not trueat profit maximization?...
Select one answer for each five QUESTION 2 1.     Products and brands in niche markets hope...
Select one answer for each five QUESTION 2 1.     Products and brands in niche markets hope to achieve profits through ________. medium pricing high promotability low margins lower demand high margins 1 points    QUESTION 3 1.     Refer to pg. 249 in your text. From a marketing management perspective, there are three main sets of brand equity drivers. Which of the three drivers was most applicable when McDonald’s decided to use the “golden arches” and Ronald McDonald as symbols of...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the central bank conducts open market sales following fiscal expansion c. income is stimulated via a tax cut rather than an increase in government spending d. the central bank conducts open market purchases following fiscal expansion e. the LM-curve is horizontal An asset (other than money) is considered to be more liquid if Select one: a. it can be quickly and cheaply transferred into money...
1. Consider two countries: Country A and country B. At the begging of year 2017, the...
1. Consider two countries: Country A and country B. At the begging of year 2017, the GDP per capita in both countries is $10’000. The annual growth rate of output in country A is 3%, while the annual growth rate of output in country B is 5%. Population does not grow. What will be the difference in the GDP per capita of both countries at the beginning of year 2019? $200 More than $200 Less than $200 $2’000 2. Which...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT