Question

For questions (10 ) t hrough (25) you fill in the blank space with the correct word: An illegal monopoly must have (10)________________that protect him from competition entering his market. He cannot be selling a product that has many close (11) ________ .His demand curve is very steep because demand for his product is very (12)_________ The monopolist will restrict his ____________to get the highest price. Long run market demand must be (14)______for a Cartel to survive and do well. Long run market supply must be (15)________for a Cartel to survive and do well. According to Hotellings Paradox, an industry with a small number of sellers with large market shares will often end up offering products that are highly (16)_______ and are aimed at the (17)_______of the market. When firms in an oligopoly have a tacit agreement to "follow the leader" in raising prices, iit is called (18) _ Oligopolies often have a demand curve that is (19)__________above the present price because if they (20)______their prices, their rivals will NOT match them. Their demand curve is (21)_________ below the present price because if they (22)____ their prices the rival firms WILL do the same thing. 23) Under Monopolistic Competition, firms will produce with _______capacity in the long run. 24) Firms in an Oligopoly usually have very ________start up costs for advertising and marketing. 25) The type of industry where firms produce “differentiated” products is an ________________

Answer 1