According to William Shepherd's Examination of Competitive Trends in the U.S.economy

question 78

Multiple Choice

According to William Shepherd's examination of competitive trends in the U.S.economy, a tight oligopoly

• A)is a single firm that controls the entire market and can block entry
• B)is an industry in which the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other
• C)is an industry in which the top four firms supply more than 60 percent of the market, have unstable market shares, and do not cooperate with each other
• D)is an industry in which a single firm has over half the market share and no close rival
• E)is an industry in which a single firm has over one-third of the entire market, the market share is stable, and the firm cooperates with other firms in the industry

---

Definitions:

Marginal Cost Curve

Graphical representation showing how the cost to produce one more unit changes as production increases, typically U-shaped due to economies and diseconomies of scale.

Average Total Cost Curve

A graphical representation showing the average cost per unit of output, calculated by dividing total costs (both fixed and variable) by the number of units produced.

Average Variable Cost Curve

A graphical representation that shows the relationship between a firm's total variable costs and output levels.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced.