1. The term oligopoly refers to:

a. general rubric for imperfect competition.

b. a situation in which the number of competing firms is large but the products differ slightly.

c. a situation in which the number of competing firms is small but greater than one.

d. the form of imperfect competition in which firms act like a monopoly, regardless of the number of firms or type of product.

2. Under which of the following conditions could a firm successfully price discriminate?

a. the good is in high demand.

b. consumers have especially high income.

c. the industry is perfectly competitive

d. no possibility of resale.

3. Monopoly exists whenever:

a. there is only one seller of a particular product.

b. a seller has some degree of control over the price he or she can charge.

c. the profit earned by the seller exceeds the amount that should properly be earned as interest on money invested, plus an allowance for the risk undertaken.

d. a seller manages to maintain his or her position through successful advertising.

4. If a firm's marginal revenue exceeds its marginal cost, maximum-profit rules require that the firm:

a. increase its output in both perfect and imperfect competition.

b. increase its output in perfect but not necessarily in imperfect competition.

c. increase its output in imperfect but not necessarily in perfect competition.

d. decrease its output in both perfect and imperfect competition.

e. increase price, not output, in both perfect and imperfect competition.

5. Marginal revenue could equal price for a profit-maximizing firm:

a. only when an industry is an oligopoly.

b. only when an industry is a monopoly.

c. if increased sales are associated with higher prices along a demand curve.

d. whenever firms are able to differentiate their products and gain some control over price.

e. only when an industry is perfectly competitive.

Attachment:- Micro Assignment 5(2).pdf