Economists use the term imperfect competition to describe:

a. all industries which produce standardized products.
b. any industry in which there is no non-price competition.
c. a pure monopoly only.
d. those markets which are not purely competitive.

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9 Nov 2020

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Related questions

35. If your competitors will follow your price cuts and ignore price hikes, your firm:
A. faces perfect competition.
B. faces a kinked demand curve.
C. is the marginal price leader of an oligopoly.
D. must be the most efficient firm in the industry.

36. Sticky prices in oligopoly markets are:
A. represented by the kinked demand curve model.
B. typical of cartels.
C. most common for highly differentiated products.
D. a result of price discrimination.

37. Oligopoly is characterized by all of the following except:
A. some industries that produce identical products.
B. frequent price wars.
C. high barriers to entry.
D. prices that are above the minimum of the ATC curve.

38. Which statement is false?
A. A monopoly is both a firm and an industry.
B. A monopoly is an imperfect competitor.
C. There are monopolies in the United States at the regional and local levels.
D. None of these statements is false.

39. Each of the following is a legal barrier to entry into an industry except:
A. government licensing.
B. patents.
C. government franchising.
D. All of these choices are legal barriers.

40. Which one of these is not a natural monopoly?
A. A local electric company
B. A local natural gas company
C. A local cable TV company
D. All of these choices are examples of natural monopolies.

whitecod944

(a) a supermarket in your hometown;

(b) the steel industry;

(d) the commercial bank in which you or your family has an account;

(e) the automobile industry.

In each case justify your classification. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why the price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.