Question 42 0 / 1 pts A natural monopoly may sometimes be justified for O there are economies of scale over the relevant range of output. the firm is characterized by more cost efficient due to its advantage of economies of scale than having a competitor None of these answers are correct O the goods and services are considered to be basic necessities such as utility productsQuestion 44 0 / 1 pts Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they all do..Usually within minutes." This kind of price fixing activity is not surprising to find that in an oligopoly, which sells a basically undifferentiated product like chicken growth hormone and all the firms change prices almost immediately and simultaneously, even if there is no explicit price fixing. Economists call this pricing strategy of Oligopoly O a collusion O Nash Equilibrium of game theory O a Cartel O a price leadershipQuestion 45 0 / 1 pts Economists would describe cartels as O an undesirable form of market organization that may charge a monopoly price O the opposite of ignoring interdependence O All of these possible answers are correct a collusive arrangement except let the market to determine equilibrium price (by fixing production quota only) Question 46 0 / 1 pts Monopolistic competition is not considered to be efficient because, among others Some forms of collusion O At profit maximizing output level, excess capacity of production remains; and also, it is not producing at the minimum ATC in LR O excess capacity remains at profit maximizing output profit maximizing output is not at the minimum ATC even in the LRQuestion 47 0 / 1 pts If firms under oligopoly meet together to decide on prices and outputs, it is known as price and output determination of O game theory O collusion non-price competition O price leadership Question 48 0 / 1 pts One of the examples of non-price competition frequently practiced by the firms under oligopoly and monopolistic competition market is, among others is O research and development O advertising O price leadership O Price discriminationQuestion 49 0 / 1 pts In the cigarette industry either R. J. Reynolds or Phillip Morris, for a time, raised prices twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount almost immediately. Economists call this O Nash Equilibrium of Game Theory O Price leadership O Cartel O collusion