Which of the following statements about industries that are oligopolies is false?
Firms in these industries may attempt to cooperate
Firms in these industries are interdependent
The fact that there is more than one firm in an oligopoly means that there are no barriers to entry
An oligopoly with two firms is called a duopoly
A monopolist will determine very ________ price for a commodity having inelastic demand.
High
Low
Normal
Constant
Which of the following statements about price taker is false?
They include monopolistic competitors and monopolists
They can always raise their prices and still retain some customers
They may set different prices in the short run and in the long run
We do not analyse them using diagrams with supply and demand curve
In ________ market there are two sellers of the commodity.
Perfect Competition
Monopoly
Duopoly
Oligopoly
Which of the following statements about a firm which is a price taker is false?
The firm will sell its product at the going market price
The demand curve faced by the firm is downward sloping
The demand curve faced by the firm is horizontal even though the market demand curve is downward sloping
The firm would sell nothing if it set a higher price than the market price
Suppose a country uses its resources in a pareto - efficient way - which of the following statements is true?
There might be inefficiency in production
There might be inefficiency in consumption
It might be possible to make one person better off without making another person worse off
There might be considerable inequality of income among the country's citizens
In _________ market goods are sold at uniform price.
Market of gold and silver is _________ market.
Short Period
Long Period
Very long Period
International
Which of the following statement about price leadership is false?
Price leadership is a form of tacit collusion
With dominant price leadership the leader in an industry is the biggest firm
With barometric price leadership the leader may change even if the relative size of each firm stays the same
Price leadership breaks down if input prices or demand conditions change
Which of the following statements is the correct definition of market failure?
It means that a market economy will fail to secure economic efficiency
It means that a market economy will fail to secure Pareto - efficiency
It means that a market economy will fail to secure productive efficiency
It means that a market economy will fail to secure technical efficiency
