Author Question: Which of the following market structures describes an industry in which a group of firms formally ... (Read 28 times)

K@ · **on:** Jun 30, 2018

Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?
a. Perfect competition.
b. Monopoly.
c. Oligopoly.
d. Cartel.
e. Monopolistic competition.

Question 2

If a firm's use of labor obeys the law of diminishing returns, then:
a. it does not have enough time to hire or fire workers.
b. doubling the number of workers causes the firm's output to also double.
c. its marginal costs must be falling.
d. hiring additional workers adds less and less additional output.