Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?
2
When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
3
The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
These are just sample questions. The actual quiz contains 25 questions.
