[Solved] All of the Following Statements,except One,are Correct Concerning the Cartel

What is the level of economic profits earned by a firm operating in the short-run under conditions of monopolistic competition? A)It is positive. B)It is likely to be positive,but could be negative. C)It is zero. D)It is negative.

Graphically,what will be the effect of entry by new firms into a monopolistically-competitive industry? A)It will shift each firm's demand curve to the right. B)It will shift each existing firm's demand curve to the left. C)It will shift the market's supply curve to the left. D)It will shift the market's demand curve to the right.

What will be the long-run result of new firms entering a monopolistically-competitive industry? A)The price charged by the representative firm will be equal to marginal cost. B)The representative firm will certainly incur losses. C)While the representative firm will not make economic profits,it will be able to make normal profits. D)The representative firm will be able to maintain economic profits.

What is meant by the term "allocative efficiency"? A)When a firm is producing an output that equals minimum AC. B)When a firm is producing an output and charging a price that equals minimum AC. C)When a firm is charging a price equal to MC. D)When a firm has achieved its MES.

All of the following,except one,are oligopoly industries.Which is the exception? A)The manufacture of automobiles. B)The manufacture of cigarettes. C)The provision of accounting services. D)The provision of long-distance telephone services.

All of the following statements,except one,are correct about game theory analysis.Which is the exception? A)It has led some economists to conclude that the likelihood of cheating is a more effective barrier to collusion than government legislation. B)It emphasizes the importance of mutual interdependence. C)It is an attempt to explain firm behaviour. D)It shows that it is rational for each firm to trust the other. E)It is able to predict a likely outcome of two firms engaged in considering a specific action.

Most economic theory is based on the assumption that firms have one goal.Which of the following is that goal? A)Profit maximization. B)Continued growth of the corporation's sales and size of operations. C)The achievement of management autonomy in decision making. D)Development of state-of-the art technology. E)Enhancement of the company's image and the management's pride.

Product differentiation includes all,except one,of the following.Which is the exception? A)Developing a recognized brand name or product logo. B)Securing a superior location or developing a reputation for exceptional service. C)Engaging in product development or improvement. D)Developing an effective advertising strategy. E)Charging a price lower than the competitor's.

Table 11.2 -Refer to Table 11.2 to answer this question.What output will this firm produce? A)700. B)760. C)820. D)880.

Table 11.2 -Refer to Table 11.2 to answer this question.If the firm produces its profit-maximizing output,how much excess capacity will it have? A)60. B)120. C)300. D)More information is needed to answer the question.