Reference no: EM132823941

Problem 1: In what circumstance would a firm expect to earn monopoly profits?

Option 1: When the firm undercuts its competitors in prices.
Option 2: When there is a state of perfect competition.
Option 3: When prices are equal to marginal costs.
Option 4: None of these choices.

Problem 2: Which of the following would not affect the threat of new firms entering an industry?

Option 1: Legal barriers.
Option 2: First-mover advantage.
Option 3: Economies of scale.
Option 4: Concentration of competitors.

Problem 3: Which of the following industry factors does not affect the bargaining power of buyers?

Option 1: How many alternative products a buyer can choose from.
Option 2: Concentration of buyers relative to the concentration of sellers.
Option 3: Price sensitivity of customers.
Option 4: Economies of scale.