Unit 3 Review - Economics of Business Firms

A few competitors

Which of the following is true of perfect competition?

Illegal agreement amonf firms to divided market, set price or limit production

Factors that make it difficult for a new firm to enter a market

The most popular business model in the USA today is

What significant risk outweighs the many advantages of both sole proprietorships and partnership models?

Which of the following is NOT an advantage of the sole proprietorship form of business organization?

Which of the following firms enjoyed a monopoly until the government firced its breakup in 1982?

Which of the following products has the greatest potential for differentiation?

Which would be an artifical barrier to industry?

What is the main advantage of incorporating a company?

What disadvantage often results from coporations' immense size?

What major antitrust legislation closed most of the gaps found in the Sherman Act?

What one word is synonymous with the government's desire to minimize monopolistic power?

May form a cartel to control price

an industry made of one firm

May be legal or illegal

Relatively easy to enter and exit the industry

Which of the following is an advantage of a sole proprietorship?

Undifferentiated products

Which of the following has the greatest potential for differentiation?

Which of the following would one expect to find operating under perfect competition?