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Home / Questions / If one firm in a perfectly competitive market doubled its output, market a.demand would

If one firm in a perfectly competitive market doubled its output, market a.demand would

  If one firm in a perfectly competitive market doubled its output, market

a.demand would double

b.demand would increase by 50 percent

c.supply would double

d.supply would increase by 50 percent

e.supply would not be appreciably affected

92.              A firm in a perfectly competitive market structure

a.will advertise to shift its demand curve to the right

b.has a demand curve for its good that is perfectly vertical

c.cannot influence the price

d.has a demand curve for its good that is downward sloping

e.has a demand curve for its good that is upward sloping

93.              Perfect competitors produce goods that are

a.highly differentiated

b.differentiated by firm

c.poor substitutes for each other

d.identical

e.unique

94.              The relevant market is defined as the set of goods whose

a.price elasticities of demand are low

b.cross elasticities with other goods outside the set are high

c.price elasticities of demand are high

d.income elasticities of demand are high

e.cross elasticities with other goods in the set are high

95.              A positive cross elasticity of demand means two goods

a.have downward-sloping demand curves

b.are substitutes and may belong to the same market

c.are complements and may belong to the same market

d.are normal goods

e.have upward-sloping demand curves

96.              Historically, firms charged with monopolizing their markets often successfully argue in
                            court that

a.a high price is not necessarily harmful to the economy

b.too much competition is cutthroat

c.the relevant market should be more broadly defined

d.the government has no right to interfere in markets

e.their good’s cross elasticity of demand is negative

97.              Historical note: In separate court cases, ALCOA and DuPont both faced charges brought
                            by the government that they

a.flooded the market with output to undermine its competition

b.charged excessively high prices

c.imposed illegal barriers to entry in their respective markets

d.monopolized their markets

e.sought to create monopolistic competition in their markets

98.              Historical note: When Dupont was charged with monopoly control of the cellophane
                            market, it responded by arguing that the relevant market was flexible wrapping materials
                            and that they had no monopoly control of that market. That argument

a.won the day so that it was found not guilty of monopolizing its market

b.was rejected by the Supreme Court and Dupont paid triple damages to its cellophane
competitors

c.was rejected by the court system and Dupont was ordered to sell off 50 percent of its
cellophane production facilities

d.never made it to the appeals court because Dupont settled out of court which is why
they are not in the cellophane market today

e.was rejected because, upon inspection, it controlled 90 percent of flexible wrapping
materials as well

99.              When the charge against ALCOA for exercising monopoly control of the aluminum
                            market was brought to court, ALCOA’s market share, excluding scrap aluminum, was

a.100 percent

b.90 percent

c.80 percent

d.65 percent

e.33 percent

100.              To determine whether McDonald’s hamburgers are in the same market as Domino’s pizza,
                            the criterion we use is their

a.price elasticities of demand

b.price elasticities of supply

c.income elasticities of demand

d.cross elasticities

e.equilibrium prices

Dec 12 2019 View more View Less

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