A small number of firms competing with each other is characteristic of:
a. monopolistic competition.
b. perfect competition.
c. oligopoly.
d. monopoly.
QUESTION 2_____ is an example of human specificity which raises the risks associated with opportunism.
a. Car insurance purchased by an individual for his/her favorite car.
b. Investment of an employer in company-specific skills.
c. Purchasing immovable machines for a particular facility.
d. Investment in research and development
QUESTION 3First-come, first-serve allocation schemes promote efficiency.
Indicate whether the statement is true or false
QUESTION 4Which of the following is characteristic of an oligopolistic industry?
a. few firms
b. interdependence
c. large barriers to entry
d. All of the above
QUESTION 5Which of the following examples can be associated with the task specificity aspect of an asset?
a. An employer's investment in employee skill building.
b. Purchasing machines which can be used to produce only a particular product.
c. Building a facility in a low cost locality.
d. An employer's investment in office renovation.
QUESTION 6Comparative advantage and relative opportunity costs are the same thing.
Indicate whether the statement is true or false
QUESTION 7An industry characterized by only a few firms in the market is called:
a. a monopoly.
b. monopolistic competition.
c. an oligopoly.
d. perfect competition.
Quick Reply
