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A firm that has merged with many other firms producing a variety of goods unrelated to

 A firm that has merged with many other firms producing a variety of goods unrelated to
                            each other

a.faces higher risks than if it specialized in one and focused on it

b.increases its market share in the industry

c.cannot maximize profit although it does maximize sales

d.cannot survive in the long run

e.is a conglomerate

92.              A group of firms that colludes to limit competition by assigning production quotas and
                            setting a uniform price for all is called a(n)

a.conglomerate

b.balanced oligopoly

c.cartel

d.oligopoly with kinked demand curves for each of the firms in the collusion

e.unbalanced oligopoly

93.              The practice of a group of firms negotiating a uniform price and fixing agreed-upon
                            market share in order to limit competition is

a.legal in all states but illegal in Washington, D.C.

b.called conglomerate behavior

c.seldom successful because entry into the industry cannot be denied

d.called collusion

e.less profitable for each firm than maximizing profit individually

94.              The primary objective of agricultural cooperatives is to

a.prohibit imports of agricultural goods into the country

b.regulate price by controlling output

c.encourage domestic competition that lowers price because most agricultural
cooperatives are consumer based

d.safeguard the quality of farm goods put on the market to avoid government
interference in their markets

e.work to facilitate conglomerate mergers

95.              Which of the following countries’ economic development began with government
                            encouragement of cartel formation?

a.United States

b.Israel

c.Brazil

d.Germany

e.Canada

96.              One of the most effective international cartels ever formed was in

a.steel

b.iron

c.wheat

d.rubber

e.oil

97.              The greatest global redistribution of income ever recorded occurred in the 1970s as a
                            direct result of

a.a worldwide drop in food prices

b.the OPEC cartel

c.growing international oligopoly

d.a shift from balanced to unbalanced oligopoly

e.a shift from price leadership to kinked demand curve oligopoly

98.              Many studies show that price and concentration ratios are

a.not related

b.inversely related

c.positively related

d.constant

e.both higher in perfectly competitive markets

99.              If a firm reacts to other firms’ market decisions by anticipating how the others will then
                            react, this reflects

a.the behavior of followers of a price leader

b.the behavior associated with price leadership

c.a market with a low concentration ratio

d.mutual interdependence

e.collusion by definition

100.              Which of the following differentiates firm behavior in oligopoly from firm behavior in
                            other market structures?

a.They are price makers.

b.They collude to lower prices together.

c.They collude to raise prices together.

d.They are price takers.

e.They take into consideration how other firms might react to their actions.

Dec 12 2019 View more View Less

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