The increase in competition in the United States between 1958 and 1988 was not a result of
a. increased imports
b. deregulation
c. antitrust activity
d. penetration of markets by foreign producers
e. import quotas
QUESTION 2If MC's Hammers, a perfectly competitive firm, finds that its total revenue is 45,000 . its fixed cost is 20,000 . and its total cost is 50,000 . its producer surplus is
a. zero because TC > TR
b. -5,000
c. 25,000
d. 15,000
e. -25,000
QUESTION 3The term monopolistic competition
a. is an alternate expression for monopoly
b. is used to describe perfect competition with strong entry barriers
c. denotes an industry with one seller of many differentiated products
d. denotes an industry with many sellers of homogeneous products
e. denotes an industry with many sellers of differentiated products
QUESTION 4According to William Shepherd's examination of competitive trends in the U.S. economy, a market is effectively competitive if
a. the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other
b. the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other
c. the industry exhibits low concentration, few barriers to entry, and little or no collusion
d. the industry exhibits low concentration and little or no collusion, despite significant barriers to entry
e. the dominant firm has two close rivals
QUESTION 5When market exchange occurs voluntarily in a competitive market
a. choice incurs no opportunity cost
b. the sum of consumer surplus and producer surplus is maximized
c. both consumer surplus and producer surplus are eliminated
d. buyers benefit at the expense of producers
e. the exchange confers no net benefit to the participants
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