Question

18.    An oligopolist cares very much what other firms in his industry are doing. True or False?

19.   In economics, a "free rider" is someone who
   a.   will not voluntarily pay for a benefit from which they cannot be excluded
   b.   always volunteers to do any job that may need to be done
   c.   prefers subsidized public transportation
   d.   hitchhikes to save money
 

21.   Public goods are
   a.   both excludable and depletable
   b.   excludable but non-depletable
   c.   depletable but non-excludable
   d.   non-excludable and non-depletable

22.   Oligopoly occurs when
   a.   a few firms sell to a few large buyers
   b.   many firms dominate a single market
   c.   a few firms dominate a single market
   d.   many firms sell differentiated products

23.   A monopolistically competitive industry is characterized by
   a.   one firm selling several products
   b.   many firms selling the same product
   c.   many firms selling slightly different products
   d.   one firm selling one product
   e.   none of the above

24.   If doubling the quantity of all inputs doubles the quantity of output, the firm is experiencing
   a.   increasing returns to scale
   b.   decreasing returns to scale
   c.   constant returns to scale
   d.   increasing costs per unit of output

25.   Which of the following formulas defines average fixed cost?
   a.   AFC = FC/Q
   b.   AFC = SRTC/Q
   c.   AFC = ATC - AVC
   d.   (a) and (c) above are both correct

Answer 1

18):-True

An oligopolist cares very much about what other firms in her industry are doing.

Define Oligopoly

A market in which control over the supply of a product is in the hands of a small number of producers and each one can influence prices and affect competitors

21):-D is right option

Public goods are non-excludable and non-rival, and they are also underprovided in a free market because of the free-rider problem.

22):-A is right option

Oligopoly is the Four largest firms produce at least 70-80 percent of the output

occurs when a few firms sell to a few large buyers

23):-c is right option

Monopolistic is characterize as industry when Many firms selling products that are similar but not identical

24):- A is right option

increasing returns to scale.

Increasing return to scale refere the situation when production of output increase due to increase in all factor of production.

Occurs when the % change in output is greater than the % change in inputs

25):-D is right option

Average Fixed Cost (AFC)

= ATC - AVC

And AFC= FC/Q

average fixes dost is defined as the fixed cost of production divides by quantity of output produced.

Sorry if 23 is wrong i am really sorry for that