If we assume that price leadership prevails in a particular industry, what might prevent the leader from announcing a dramatic increase in the price of the product sold?

Question 10 options:

The fear that new firms would be tempted to enter the industry

The fear that such action would provide proof that the firms are engaged in covert collusion

The fear that one of the other firms would break ranks and increase their price even more

The fear that the AC (average cost) of the other firms within the industry would decrease

What measures the percentage of an industry's total sales that is controlled by the few (commonly, four) largest firms?

Question 11 options:

Economy of scale advantage

Concentration of scale

Concentration ratio

Market concentration

Of which of the following is OPEC an example?

Question 12 options:

A non-colluding oligopoly

A cartel

A differentiated oligoploly

A duopoly

All of the following, except one, are types of barriers to entry. Which is the exception?

Question 13 options:

Technical barriers

Economic barriers

Legal barriers

Social barriers

Which of the following is an example of a technical barrier to entry?

Question 14 options:

Sole ownership of a resource

Copyright

Patent

Economies of scale

Licensing fee

What is the name for a market where a single producer is able to produce at a lower cost than competing firms could?

Question 15 options:

Unregulated monopoly

Trade association

Natural monopoly

Oligopoly

Define perfect price discrimination.

Question 16 options:

A situation where a seller charges the highest price to all of the customers that they are willing to pay for each unit of the item bought

A situation where a firm can charge the highest price

A situation where the firm can charge the lowest price to a few of the customers

A situation where a seller charges the lowest price to some of the regular customers

A situation where the firm charges the highest price to a few of the customers

What is meant by the term natural monopoly?

Question 17 options:

A single producer in a market, usually with monopoly rights over input resources, who is able to produce at a higher cost than competing firms could

A single producer in a market, usually supported by government subsidies, who is able to produce at a higher cost than competing firms could

A single producer in a market, usually with patent rights, who is able to produce at a cost equal to those of the competing firms

A single producer in a market, usually with large economies of scale, who is able to produce at a lower cost than competing firms could

All of the following statements, except one, are true about a monopolist. Which is the exception?

Question 18 options:

The monopolist can determine the quantity offered for purchase, but the market will determine the price

The monopolist can determine both the quantity offered for purchase and the price

The monopolist faces a downward-sloping market demand curve

The monopolist can determine the price, but the market will determine the quantity purchased

All of the following, except one, are barriers to entry. Which is the exception?

Question 19 options:

Minimum wage legislation

Government licences

Copyrights

Economies of scale

The Canadian wingpot industry consists of 12 companies whose annual sales (in $millions) are as follows:

Company A 52

Company B 47

Company C 42

Company D 20

Company E 15

Next 7 companies (total) 54

What is the four-firm concentration ratio for this industry?

Question 21 options:

62%

70%

73%

86%

100%

Which of the following is an oligopoly industry?

Question 22 options:

Mom and Pop convenience stores

Major breweries

Chinese take-out restaurants

Used car dealerships