Explain how a seller successfully practices price discrimination. Discuss the major theories of oligopolistic behavior. Distinguish between a horizontal merger, a vertical merger, and a conglomerate merger. Explain how the threat of potential competition encourages firms to produce a high quality product and sell it at a reasonable price to consumers. Key Concept Quiz concentration ratios _____ a the market structure closest to perfect competition monopolistic competition _____ b the difference between the output corresponding to minimum average total cost and the output product differentiation produced by a monopolistically competitive firm excess capacity in the long run price discrimination _____ c. a form of imperfect competition oligopoly _____ d. a form of collusion game theory _____ e. a market characterized by free entry and exit cartel _____ f. provides an explanation for oligopolistic behavior horizontal merger _____ g. the practice of charging some customers a lower price than others for an identical product contestable market _____ h. tell us how close an industry comes to the extremes of perfect competition and monopoly ____ i. is a fundamental characteristic of monopolistic competition _____ j. when two firms selling similar products merge Multiple Choice Questions When markets are imperfectly competitive a. there is usually only one seller in a market b. firms have some price-making ability c. firms behave exactly like monopolists firms always behave like oligopolists Concentration ratios typically refer to top four firms in an industry
Explain how a seller successfully practices price discrimination. Discuss the major theories of oligopolistic behavior. Distinguish between a horizontal merger, a vertical merger, and a conglomerate merger. Explain how the threat of potential competition encourages firms to produce a high quality product and sell it at a reasonable price to consumers. Key Concept Quiz concentration ratios monopolistic competition product differentiation excess capacity price discrimination oligopoly game theory cartel horizontal merger contestable market _____ a the market structure closest to perfect competition _____ b the difference between the output corresponding to minimum average total cost and the output produced by a monopolistically competitive firm in the long run _____ c. a form of imperfect competition _____ d. a form of collusion _____ e. a market characterized by free entry and exit _____ f. provides an explanation for oligopolistic behavior _____ g. the practice of charging some customers a lower price than others for an identical product _____ h. tell us how close an industry comes to the extremes of perfect competition and monopoly ____ i. is a fundamental characteristic of monopolistic competition _____ j. when two firms selling similar products merge Multiple Choice Questions When markets are imperfectly competitive a. there is usually only one seller in a market b. firms have some price-making ability c. firms behave exactly like monopolists firms always behave like oligopolists Concentration ratios typically refer to top four firms in an industry