Economic and Legal Foundations of EU Competition Law

Cournot competition is a market structure where firms compete on price.

• True

• False

When goods and services in an economy are distributed according to consumer

preferences it is called...

• Allocative efficiency

• Productive efficiency

• Social efficiency

• X-efficiency

The lemons problem illustrates the concept of...

• Dynamic efficiency

• Assymetric information

• Consumer surplus

• Perfect competition

The change in total production cost that comes from making or producing one additional

unit is called

• Average cost of production

• Marginal revenue

• Marginal cost of production

• Average revenue

A market structure with a small number of firms, none of which can keep the others from

having significant influence is called an

Under perfect competition firms are

• Price takers

• Price setters

The behavior of cartels is best illustrated by

• The prisoner's dilemma

• The lemons problem

• The Bertrand model of competition

• a monopolistic market structure

The study of how the allocation of resources and goods affects social welfare is known as

• Allocative economics

• Distributive economics

• Welfare economics

• Social economics

Which of the following is a characteristic of a monopoly?

• Market share has no influence on prices

• Price taking

• Economies of scale

Conservative and liberal neo-classical economists argue that the main goal of competition is

to maximize allocative efficiency.

• True

• False