* not completed

. Market share is measured by:

Sales of a product or business as % of total market sales correct incorrect

Total market sales as a % of a product's sales correct incorrect

Profits of one business as % of total market profits correct incorrect

Profits as % of total market size correct incorrect

* not completed

. What of the following is not true in perfect competition?

Normal profits are earned in the long run correct incorrect

There are many buyers and sellers correct incorrect

There are barriers to entry correct incorrect

Customers have perfect information correct incorrect

* not completed

. What of the following is not true in perfect competition?

All units are sold at the same price correct incorrect

Price equals marginal revenue correct incorrect

There are only a few businesses in the market correct incorrect

Businesses are price takers correct incorrect

* not completed

. What happens in the long run in perfect competition?

Abnormal profits are earned correct incorrect

Businesses are allocatively inefficient correct incorrect

A firm produces where average revenue is greater than average cost correct incorrect

A firm produces where marginal revenue equals marginal cost correct incorrect

* not completed

. Complete the sentence. In perfect competition …

each firm is a large part of the industry correct incorrect

the price equals the marginal revenue correct incorrect

a firm profit maximizes where total revenue equals total variable cost correct incorrect

firms use advertising to differentiate products correct incorrect

* not completed

. Which of the following is NOT a barrier to entry:

patents correct incorrect

the need for a licence to operate correct incorrect

low economies of scale correct incorrect

well established brands correct incorrect

* not completed

. Which of the following is NOT a type of barrier to entry?

structural correct incorrect

seasonal correct incorrect

strategic correct incorrect

statutory correct incorrect

* not completed

. When a business has a market share of 100% it is known as:

A competitive market correct incorrect

A monopoly correct incorrect

An oligopoly correct incorrect

Monopolistic competition correct incorrect

* not completed

. From the following, when do abnormal profits always occur?

Marginal revenue equals the price correct incorrect

Average revenue is more than average cost correct incorrect

Average revenue equals average cost correct incorrect

Marginal cost equals average cost correct incorrect

* not completed

. Complete the sentence. In a monopoly market…

there are no barriers to entry correct incorrect

abnormal profits are only earned in the short run correct incorrect

the demand curve for a business is downward sloping correct incorrect

a profit maximising business produces where average revenue equals marginal revenue correct incorrect

* not completed

. Complete the sentence. In monopoly…

the marginal revenue is greater than the average revenue correct incorrect

abnormal profits can be earned in the long run correct incorrect

firms are allocatively efficient correct incorrect

firms produce where average costs equal marginal costs correct incorrect

* not completed

. In a monopoly…

Abnormal profits can only be earned in the short run correct incorrect

A firm produces where total revenue equals total costs correct incorrect

There are many firms competing correct incorrect

There are barriers to entry correct incorrect

* not completed

. What does the kinked demand curve model assume?

A price increase is followed by rivals correct incorrect

A price decrease is not followed by rivals correct incorrect

Firms work together to maximize profits correct incorrect

Demand is price inelastic if there is a price cut correct incorrect

* not completed

. Complete the sentence. In monopolistic competition …

a few firms dominate the market correct incorrect

firms face a horizontal demand curve correct incorrect

there is entry and exit in the long run correct incorrect

only normal profits can be earned in the short run correct incorrect

* not completed

. Complete the sentence. In a cartel …

firms compete against each other correct incorrect

firms act together as if they were a monopolist correct incorrect

each firm inevitably profit maximizes correct incorrect

only normal profits can be made correct incorrect

* not completed

. Complete the sentence. In oligopoly …

a few firms dominate the market correct incorrect

one firm dominates the market correct incorrect

firms always collude correct incorrect

the products of firms are identical correct incorrect

* not completed

. If a business is charging different prices depending on demand conditions it will have the highest price when the price elasticity of demand is ….

- 2 correct incorrect

- 5 correct incorrect

- 0.8 correct incorrect

- 0.01 correct incorrect

* not completed

. Complete the sentence. In monopolistic competition…

a few firms dominate the market correct incorrect

firms face a horizontal demand curve correct incorrect

there is entry and exit in the long run correct incorrect

only normal profits can be earned in the short run correct incorrect

* not completed

. In game theory when a business chooses the best of the worst outcomes this is called:

A mini-mini strategy correct incorrect

A mini- sum correct incorrect

A maxi-maxi strategy correct incorrect

A maxi-min strategy correct incorrect

* not completed

. A dominant strategy in oligopoly occurs when:

one firm always wins in the market correct incorrect

one firm has the largest market share correct incorrect

whichever assumptions are made the same strategy is chosen correct incorrect

one firm will inevitably become a monopoly due to market power correct incorrect

* not completed

. When a firm charges a different price for the same product this is called:

Price discrimination correct incorrect

Price differentiation correct incorrect

Price determination correct incorrect

Price distinction correct incorrect