A Special Kind of Imperfectly Competitive Market That Has Only
A special kind of imperfectly competitive market that has only two firms is called
A)an incidental monopoly.
B)a two-tier competitive structure.
E)a natural monopoly.
Consider the three largest cell-phone service providers in Canada - Bell,Telus,and Rogers.If we observe that all three companies increase their monthly service fees simultaneously,we might conclude that
A)there is tacit collusion among these firms.
B)these firms have monopolized the industry.
C)they are perfect competitors and they are unable to set the price.
D)they are engaged in predatory pricing.
E)they are creating entry barriers to prevent entry by new firms.
Assume that the worldʹs largest smart-phone producers (Apple,Nokia,Samsung,etc.)operate in an oligopolistic industry.In the long run,which of the following is the most important form of competition between these firms?
Suppose there are only five construction companies in a particular region that are each large enough to take on large public infrastructure projects (roads,bridges,sewers,etc.).Representatives of these companies meet regularly for coffee or on the golf course and agree on which company will submit the lowest bid for a particular project.This type of firm behaviour is an example of
A)cooperative behaviour that results in higher output and lower prices.
B)cooperative behaviour that results in increased consumer welfare.
C)tacit collusion,and is legal as long as output is not restricted.
D)predatory pricing,and is meant to prevent new entrance to the industry.
E)explicit collusion and is illegal.