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40<br />
A market served by only one firm is called a(n. __________ .<br />
A. perfectly competitive market<br />
B. monopoly<br />
C. oligopoly<br />
D. Any of the above could be<br />
correct.<br />
Question 14 of<br />
2.5/ 2.5 Points<br />
40<br />
Compare two markets. In one market, the HHI is 500, in the other market the HHI is 1,500.<br />
What must be true of these two markets?<br />
A. The firms in the market in which the HHI is 1,500 have greater market power than do the<br />
firms in the market in which the HHI is 500.<br />
B. There are more firms in the market in which the HHI is 1,500 than in the market in which the<br />
HHI is 500.<br />
C. The firms in the market in which the HHI is 1,500 have less market power than do the firms<br />
in the market in which the HHI is 500.<br />
D. The market in which the HHI is 500 is, by definition, an oligopoly but the market in which<br />
the HHI is 1,500 is not an oligopoly.<br />
Question 15 of<br />
2.5/ 2.5 Points<br />
40<br />
Oligopoly differs from monopoly and perfect competition in that __________ .<br />
A. firms consider other firms’ actions when choosing price and<br />
quantity<br />
B. there are a few firms in the industry
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