Chapter 10 Post Quiz
Oligopoly and Monopolistic Competition

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Market power	a. Calculated by summing the squares of the percentage market shares of all the participants in an industry.
	2. Eight-firm concentration ratio	b. The situation where each firm's business depends upon the behavior of its rivals.
	3. Herfindahl-Hirschman Index	c. Sold by firms under monopolistic competition.
	4. 10,000	d. The percent of total industry production that is accounted for by the largest eight firms.
	5. Strategic interaction	e. An organization of independent firms, producing similar products, that work together to raise prices and restrict output.
	6. Poor quality and high prices	f. Entry and exit are easy in this market structure.
	7. Collusion	g. The results of imperfect competition.
	8. Cartel	h. The situation where two or more firms set their prices and output according to a plan agreed upon between them in order to divide the market amongst themselves.
	9. Monopoly profit	i. A long-run result of monopolistic competition.
	10. Monopolistic competition	j. Attained when oligopolists collude.
	11. Differentiated products	k. The Herfindahl-Hirschman Index for a monopoly.
	12. Zero profits	l. The degree of control that a single firm or small number of firms has over the price and production decisions in an industry.
	13. Price discrimination	m. The selling of the same product to different buyers at different prices.
	14. Inappropriability	n. Occurs when firms cannot capture the full monetary value of their inventions.
	15. Patent	o. A temporary monopoly created to encourage research and development.
	16. Deadweight losses	p. The losses in real income associated with monopolies, tariffs and quota, taxes, and other distortions.