The firms in an oligopoly market structure agree to collude because:

a.it helps them to earn more profits.

b.each firm wants to charge a lower price for its product than its rivals.

c.the firms want to maintain a healthy relationship with each other.

d.it helps them to enjoy economies of scale.

e.each firm wants to know the strategy of its rivals.

The most-favored customer is one who:

a.is guaranteed to receive the lowest price for a product

.b.buys a firm's product regularly.

c.has a high purchasing power.

d.spends the maximum amount of money on a firm's product.

e.is an acquaintance of the owner of a firm.

Amonopolistically competitive firm will advertise if?

a.The demand curve becomes more inelastic.

b.The demand curve isperfectly elastic.

c.The demand curve decreases.

d.Each firm in monopolistic competition is a price taker.

e.The costs of advertising exceed the revenue.

When the existing firms in a monopolistically competitive industry earn above-normal profit:

a.their cost structure automatically changes, eliminating the additional profit.

b.new firms enter into the market, and entry continues until firms earn normal profit.

c.they increase their production and lower the price level.

d.new firms have no incentive to enter the market.

e.new firms have an incentive to enter the market but are legally barred from doing so.