Author Question: Which of the following increases the information available to prospective buyers? A) The auto ... (Read 35 times)

aabwk4 · **on:** Jun 29, 2018

Which of the following increases the information available to prospective buyers?

A) The auto dealer that allows customers to test drive their cars
B) The grocer that packages its meat in cellophane
C) The college that organizes orientation sessions for potential students
D) The baker that gives customers free samples
E) All of the above.

Question 2

Which of the following is a difference between an oligopoly model with homogeneous products and a monopoly?

A) Firms in an oligopoly with homogeneous products earn positive economic profits in the long run, while a monopoly earns zero economic profits in the long run.
B) Firms in an oligopoly with homogeneous products face stiff competition from its rivals, while there is no competition in a monopoly.
C) There are huge barriers to entry in an oligopoly with identical products, while there are no barriers to entry in a monopoly.
D) Firms in an oligopoly with identical products charge a price higher than marginal cost in the long run, while a monopoly charges a price lower than marginal cost in the long run.