pure monopoly examples automobile industry

are in film and television production, recorded music, wireless carriers, and airlines. Currently, some of the most notable oligopolies in the U.S.Since the 1980s, it has become more common for industries to be dominated by two or three firms as merger agreements between major players have resulted in industry consolidation.An oligopoly is when a market is shared by only a small number of firms, resulting in a state of limited competition.Question: In monopolistic competition a firm has a limited degree of price-making ability. Question: Which would make an individual firm's demand curve less elastic? Question: The demand curve faced by a monopolistic competitive firm is:Īnswer: More elastic than the monopolists demand curve Question: One difference between monopolistic competition and pure competition is that there is some control:Īnswer: over price in monopolistic competition Question: The goal of product differentiation and advertising in monopolistic competition is to make:Īnswer: Price less of a factor and product differences more of a factor in consumer purchases. Question: A monopolistically competitive industry is like a purely competitive industry in that:Īnswer: Neither industry has significant barriers to entry Question: Which is a characteristic of monopolistic competition? Easy. Question: Allocative inefficiency criticism is when'Īnswer: A monopolist fails to expand output to the level where the consumer's valuation of an additional unit is just equal to its opportunity cost (invisible hand) Question: When compared with the purely competitive industry with identical costs of production a monopolist will produce: Instead the output level for a profit maximizing monopoly is determined by: Question: Many people believe that monopolies charge any price they want to without affecting sales. Question: A non-discriminating monopolist will find that marginal revenue is less than: Question: The demand curve confronting a nondiscrimination pure monopolist is:Īnswer: The same as the industry's demand curve Question: One feature of pure monopoly is that the demand curve: Question: A monopoly is most likely to emerge and be sustained when:Īnswer: economies of scale are larger than market demand Question: Barriers to entry can result from: Question: One major barrier to entry under pure monopoly arises from: Question: Under conditions of pure monopoly, entry is: Question: One feature of pure monopoly is that the monopolist: Question: Which is most characteristic of pure monopoly?Īnswer: The firm produces a good or a service for which there are no close substitutes. Question: Which phrase would be most characteristic of pure monopoly? Question: If the demand curve facing a firm is perfectly elastic then:Īnswer: Its marginal revenue will equal price Question: Sam owns a firm that produces tomatoes in a purely competitive market. Question: A purely competitive firm does not try to sell more of its product by lowering its price below the market price because:Īnswer: It can sell all it wants to at the market price

Question: Price is constant or given to the individual firm selling in a purely competitive market because:Īnswer: Each seller supplies a negligible fraction of supply Question: There is no control over price by firms in: Question: The steel and automobile industries would be examples of which market model? Question: The production of agricultural products such as wheat or corn would best be described by which market model? Question: The retail trade for clothing would be an example of which market model?

Question: Electric and Gas utilities would best be described by which market model? Question: Which idea is inconsistent with pure competition? Question: Mutual Interdependence tends to limit control over price in which market model? Question: There would be some control over price within rather narrow limits in which market model?

Question: There would be a unique product for which there are few close substitutes under which market model? Question: Which market model has the least number of firms? Question: Which market model is characterized by many firms, differentiated products, and relatively easy entry?

Pure monopoly examples automobile industry