[Solved] All of the Following,except One,are Possible Goals That a Firm

Which of the following statements is correct for an oligopoly firm with a kinked-demand curve? A)It will increase its total revenue by raising its price but lower it by decreasing its price. B)It will decrease its total revenue by raising its price but raise it by decreasing its price. C)It will increase its total revenue by either raising or lowering its price. D)It will decrease its total revenue by either raising or lowering its price. E)Its total revenue will not change regardless of whether it raises or lowers its price.

In what way does the theory of the kinked-demand curve explain price stability in an oligopoly industry? A)Because if the firm either raises or lowers its price,its total revenue will decrease. B)It assumes that rival firms will match any price increase and ignore any price decrease. C)It assumes that firms are in collusion with each other. D)It assumes that demand is inelastic above the established price and elastic below it.

In the kinked-demand curve variant of oligopoly theory,what output will the firm produce? A)Where marginal cost equals marginal revenue. B)Where demand is elastic. C)Where demand is inelastic. D)Where marginal cost equals average cost.

All of the following except one are valid statements concerning the debate about oligopolies and efficiency.Which is the exception? A)Oligopolies are often very large and this creates an environment that is conducive to research and technological change. B)The barriers to entry in an oligopoly industry encourage research. C)Oligopolies usually achieve productive efficiency. D)Because of the barriers to entry in oligopoly industries,oligopolies are likely to become complacent and lose their competitive edge.

Who challenged the fundament assumption of profit maximization? A)John Galbraith. B)George Stigler. C)Adam Smith. D)John Maynard Keynes.

The Canadian gumnut industry consists of 10 companies whose annual sales are as shown: -What is the four-firm concentration ratio for this industry? A)25%. B)65%. C)75%. D)80%

The Canadian gumnut industry consists of 10 companies whose annual sales are as shown: -What is the total sale of the four biggest firms for this industry? A)$91 million. B)$118 million C)$129 million. D)$172 million.

In what type of market does the gumnut industry operate? A)Perfect competition. B)Monopolistic competition. C)Oligopoly. D)Monopoly

According to Galbraith,why might modern corporations not attempt to maximize profits? A)Because the managers are more interested in maximizing their own incomes. B)They are afraid of the reaction of their consumers. C)They are afraid of the reaction of rival companies. D)They are afraid of the reaction of the government.

What does product differentiation mean? A)It is the attempt by the firm to offer a product similar to that of its rivals. B)It is the attempt by the firm to offer a product seen to be different from that of its rivals. C)It is the practice of many firms to sell more than one product. D)It is the practice of many firms to sell the same product in more than one market.