The minimum or low point on the AVC

curve where it intersects the MC curve is called the __________ point.

a.shutdown

b.breakeven

c.equilibrium

d.renewal

Profit or loss is measured as __________.

a.total variable cost - total fixed cost

b.average cost output quantity

c.marginal revenue output quantity

d.total revenue - total cost

Which 1917 legislation prohibited a company from acquiring stock of a competing company if such an acquisition would substantially lessen competition?

a.the Sherman Antitrust Act, Section 2

b.the Clayton Act

c.the Sherman Antitrust Act, Section 1

d.the New York State Antitrust Statute

All of the following are fallacies

about monopolies EXCEPT __________.

a.monopolies always earn profits

b.monopolies will produce where the demand is inelastic

c.monopolies charge the highest possible price

d.monopolies do not have supply curves

Which of the following is an example of a monopoly that loses money?

a.the U.S. Postal Service

b.the Olympic Games

c.Microsoft

d.Apple

All cartels and monopolies face two common problems: cheating and __________.

a.new entries

b.exiting partners

c.government regulation

d.bankruptcy

All but which of the following are characteristics of monopolistic competition?

a.a large number of close substitutes

b.a homogeneous product

c.a large number of sellers

d.an easy entry and an easy exit

In the study of oligopolies, game theory is useful because each member firm must __________.

a.consider the "moves" of its competitors on a daily basis

b.continually compete to be the sole winner

c.learn how to cooperate with its rival firms

d.learn how to collude with its rival firms

For what purpose do economists use a concentration

ratio?

a.to compare the percentage of an industry's total sales to another industry's total sales

b.to measure the distribution of economic power among the top firms in a market

c.to measure the average economic success of all the firms in a market

d.to compare, in fraction form, the smallest firm's size to the largest firm's size