1 .		Under which market structure is a firm not highly concerned with customers or competition, but is very concerned with cost? [Hint]   Perfect Competition.   Monopoly.   Monopolistic Competition.   Oligopoly.
2 .		Under which market structure is a firm highly concerned with cost and customers, but not so concerned with competition? [Hint]   Perfect Competition.   Monopoly.   Monopolistic Competition.   Oligopoly.
3 .		Which market structure would be concerned with cost and customers, but probably most concerned with competition? [Hint]   Perfect Competition.   Monopoly.   Monopolistic Competition.   Oligopoly.
4 .		Which market structure would be concerned with cost and competition, but probably most concerned with customers? [Hint]   Perfect Competition.   Monopoly.   Monopolistic Competition.   Oligopoly.
5 .		The low price, eat-in restaurant industry for a small geographic market is mostly likely [Hint]   Perfectly competitive.   Monopolistic.   Monopolistically competitive.   Oligopolistic.
6 .		The fast-food industry [Hint]   Is perfectly competitive on a regional, national, or global scale; but monopolistically competitive on a local scale.   Is oligopolistic on a regional, national, or global scale; but monopolistically competitive on a local scale.   Is monopolistically competitive on all scales of operation.   Is oligopolistic on all scales of operation.
7 .		The difference between new automobile manufacturing and new automobile sales [Hint]   Lies in the degree of competition in the two respective industries.   Lies in the degree of rivalry and interdependence among the firms.   Automobile manufacturing is generally considered oligopolistic while new automobile sales may assume the characteristics of any of the four major market structures.   All of the above are accurate.
8 .		Agricultural products, local utilities, the soft drink industry, and personal computer assembly and sales firms are generally considered [Hint]   Perfectly competitive, monopolistic, monopolistically competitive, and oligopolistic, respectively.   Perfectly competitive, oligopolistic, oligopolistic, and monopolistically competitive, respectively.   Perfectly competitive, monopolistic, oligopolistic, and monopolistically competitive, respectively.   None of the above are correct.
9 .		For a firm in a monopolistically competitive market: P = 15 @ MR = MC for Q* = 500; AVC = 10 @ Q*; TFC = 2000. [Hint]   This firm should shut down.   The firm should operate, but will incur a loss of $500.   The market is in long-run equilibrium.   None of the above are accurate.
10 .		Using the information presented in question 9 [Hint]   The firm should operate.   The firm will make a profit.   Entry into this industry is likely   All of the above are accurate.
11 .		Given the information presented in question 9; suppose that TFC = 3000 rather than the 2000 originally proposed. Which of the following statements is / are not true? [Hint]   The firm should shut down.   If the firm operates, it will incur a loss.   Exit from this industry is likely.   All of the above statements are accurate.
12 .		Given the information presented in question 9; suppose that TFC = 2500 rather than the 2000 originally proposed. Which of the following statements is / are true? [Hint]   The firm will break even.   The firm will earn a normal profit.   This industry is probably in long-run equilibrium.   All of the above statements are accurate.
13 .		Which of the following best describes the process by which a monopolistically competitive market attains long-run equilibrium? [Hint]   Firms adjust productive capacity in response to changes in market clearing prices.   Normal profits attract entry in which the normal profits drop to break-even for all firms.   Profits attract entry, losses create exit, and equilibrium is attained when the remaining firms economically break-even.   None of the above are accurate.
14 .		Which of the following U.S. industries is not generally regarded as ologopolistic? [Hint]   Automobile manufacturing.   Personal computer manufacturing.   Breakfast cereals   All of the above are considered oligopolistic.
15 .		According to the Census of Manufactures 8-firm concentration ratio, the most highly concentrated U.S. industry is [Hint]   Malt beverages   Cigarettes   Primary copper.   Greeting cards.
16 .		According to the Census of Manufactures Herfindahl-Hirschman (HH) index, the most highly concentrated U.S. industry is [Hint]   Malt beverages   Cigarettes   Primary copper.   Greeting cards.
17 .		Which is the defining characteristic of oligopoly? [Hint]   Product differentiation.   Significant barriers to entry.   Intense rivalry   All of the above are defining characteristics of oligopoly.
18 .		The kinked demand curve model [Hint]   Reflects the interdependence of the firms.   Results in rivals following a price increase.   Results in rivals not following a price decrease.   All of the above are results of the kinked demand curve model.
19 .		Under the price leadership model [Hint]   Rivals will follow price decreases but not increases.   Rivals will follow both price increases and decreases.   The leader is the largest firm.   None of the above are accurate of the price leadership model.
20 .		The moral(s) of the prisoner's dilemma is / are [Hint]   Mutual interdependence results in more potential outcomes than options.   There is often a dominant strategy.   There is an incentive for collusion.   All of the above are results of the prisoner's dilemma.