MCQ

QUESTION 29

An industry which used to be characterized bymonopolistic competition now hasbecomeanoligopoly.As such,we would expect;

1. that the four-firm concentration ratio has increased
2. that the four-firm concentration ratio has decreased
3. that less money will be spent on advertising (fighting for market share)
4. none of the above

1 points

QUESTION 30

A firm can produce at above capacity in the short term. . .

1. but fixed costs will increase
2. never, as capacity is always fixed in the short term
3. and the profit margin per unit will increase (assuming a constant selling price)
4. but per unitcosts will increase