DeVry ECON 312 Week 3 Quiz (2014)

1. (TCO 3) Which of the following is most likely to be an implicit cost for Company X? (Points : 1)Forgone rent from the building owned and used by Company XRental payments on IBM equipmentPayments for raw materials purchased from Company YTransportation costs paid to a nearby trucking firmQuestion 2.2. (TCO 3) The short run is characterized by (Points : 1)plenty of time for firms to either enter or leave the industry.increasing, but not diminishing returns.fixed plant capacity.zero fixed costs.Question 3.3. (TCO 3) An industry comprised of 40 firms, none of which has more than 3% of the total market for a differentiated product is an example of (Points : 1)monopolistic competition.oligopoly.pure monopoly.pure competition.Question 4.4. (TCO 3) Which of the following statements applies to a purely competitive producer? (Points : 1)It will not advertise its product.In long-run equilibrium it will earn an economic profit.Its product will have a brand name.Its product is slightly different from those of its competitors.Question 5.5. (TCO 3) Which of the following best approximates a pure monopoly? (Points : 1)The foreign exchange marketThe Kansas City wheat marketThe only bank in a small townThe soft drink marketQuestion 6.6. (TCO 3) Barriers to entering an industry (Points : 1)encourage allocative efficiency.encourage productive efficiency.are the basis for monopoly.apply only to purely monopolistic industries.Question 7.7. (TCO 3) The restaurant, legal assistance, and clothing industries are each illustrations of (Points : 1)countervailing power.homogeneous oligopoly.monopolistic competition.pure monopoly.Question 8.8. (TCO 3) Product variety is likely to be greater in (Points : 1)monopolistic competition than in pure competition.pure competition than in monopolistic competition.homogenous oligopoly than in monopolistic competition.homogenous oligopoly than in differentiated oligopoly.Question 9.9. (TCO 3) Which of the following is the best example of oligopoly? (Points : 1)Women’s dress manufacturingAutomobile manufacturingRestaurantsCotton farmingQuestion 10.10. (TCO 3) An industry having a four-firm concentration ratio of 85% (Points : 1)approximates pure competition.is monopolistically competitive.is a pure monopoly.is an oligopoly.