Question : 18.5   Chapter Figures The figure above shows the market for airplanes. 1) : 1241322

 

18.5   Chapter Figures

 

The figure above shows the market for airplanes.

 

1) Suppose the airplane market is an oligopoly. If the firms act as a monopolist, the price will be ________ and if the firms act as competitors the price will be ________.

A) $13 million per plane; $1 million per plane

B) $1 million per plane; $13 million per plane

C) $13 million per plane; $13 million per plane

D) $1 million per plane; $1 million per plane

E) None of the above answers is correct.

2) Suppose the airplane market is an oligopoly. According to the figure above, if the firms act as a monopolist, the quantity produced will be ________ planes per week, and if the firms act as competitors, the quantity produced will be ________ planes per week.

A) 6; 12

B) 12; 6

C) 0; 6

D) 12; 0

E) None of the above answers is correct.

 

3) Suppose the airplane market is an oligopoly. According to the figure above, the price can range as high as ________ and as low as ________.

A) $13 million per plane; $1 million per plane

B) $30 million per plane; $13 million per plane

C) $13 million per plane; $13 million per plane

D) $1 million per plane; $1 million per plane

E) None of the above answers is correct.

 

4) Suppose the airplane market is an oligopoly. According to the figure above, the quantity produced can range as high as ________ planes per week and as low as ________ planes per week.

A) 10; 4

B) 12; 6

C) 6; 0

D) 12; 0

E) None of the above answers is correct.

18.6   Integrative Questions

 

1) A characteristic common in both oligopoly and monopolistic competition is

A) a small number of firms compete in the market.

B) natural or legal barriers prevent the entry of new firms into the market.

C) each firm faces a downward-sloping demand curve.

D) the firms in the market are interdependent.

E) each firm has a large share of the market.

 

2) If the HHI for an industry equals 3,200,

A) firms in the industry must enter a cartel in order to earn an economic profit.

B) firms in the industry are most likely to make zero economic profit.

C) the industry is probably an oligopoly.

D) firms in the industry are likely to act independently of each other.

E) the industry is almost surely monopolistic competition.

 

3) Which of the following are characteristics of an oligopoly?

i)The HHI for an oligopoly is between 100 and 1800.

ii)There are a few firms that compete.

iii)The firms can increase their profit by forming a cartel.

A) i and ii

B) i and iii

C) ii and iii

D) i, ii, and iii

E) i only.

4) When a market has barriers to entry,

A) then in the long run it is possible for the firms to incur economic losses.

B) then in the long run the only possible outcome for the firms to make zero economic profit.

C) then in the long run it might be possible for the firms to make a positive economic profit.

D) oligopolies cannot be created.

E) the HHI almost always falls below 1,000.

5) The figure above shows the market demand curve and the ATC curve for a firm. If all firms in the market have the same ATC curve, then ________ limit(s) the market to 3 firms.

A) economies of scale

B) a “tit for tat” strategy

C) collusion

D) a Nash equilibrium

E) legal requirements

6) The figure above shows the market demand curve and the ATC curve for a firm. Each firm in the market has the same ATC curve. If the firms in the industry agree to form a cartel, the firms in the industry make an economic profit if there are ________ firms, each producing ________ units per hour.

A) 3; 4,000

B) 4; 3,000

C) 2; 6,000

D) 2; 4,000

E) 2; 12,000

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more