When firms in an oligopoly successfully collude and do not cheat on a cartel agreement, their combined long-run economic profit is similar to:

Question 15 options:

	Monopolistic Competition
	Perfect Competition
	Non-colluding Oligopolists
	Monopoly

Which of the following equations is true at the profit maximizing output level for a monopolist ?

options:

	Marginal Cost = Marginal Revenue
	Price = Marginal Revenue
	Marginal Cost = Price
	All of the above

Which of the following industries described is most likely an oligopoly?

options:

	There are two producers of diamonds in the world and diamonds are sold in many different countries
	Electricity in the province is distributed by one state-owned corporation, which also sets the electricity distribution price.
	In the tomatoes market, the market share of the two largest companies combined equals 7%. There are other producers in the market as well.
	The price of blueberries is determined by global supply and demand. A small share of the global supply is produced by Canadian farmers.

If a good is non-rival in consumption:

options:

	the marginal cost of allowing one more unit to be consumed is zero.
	it is going to be overused.
	it will suffer from the free rider problem.
	All of the above

Martha is the only producer of apple pies in Guelph. Above you are given a demand curve for apple pies in Guelph, and Martha's marginal cost and marginal revenue curves. Assuming that Martha is maximizing profits, what quantity should she produce?

options:

	22.5
	15
	30
	45