A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products
Related Mcqs:
- The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost - The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?
A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market
B. Monopolistically competitive firms face a downward-sloping demand curve just like competitive firms.
C. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.
D. The products are differentiated in a monopolistically competitive market just like in a competitive market. - Which of the following statements best describes the outcome under monopolistic competition ?
A. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal
B. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal
C. in monopolistic competition there is the correct number of firm and each firm produces a slightly different product at an optimal scale.
D. In monopolistic competition there are too many firms and each firm produce a slightly different product at the optimal scale - In monopolistic competition firms achieve some degree of market power ?
A. by producing differentiated products
B. because of barriers to exit from the industry
C. by virtue of size alone
D. because of barriers to entry into the industry - Which of the following statements best describes the outcome under monopolistic competition ?
A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
B. It is efficient because entry is free and economic profits are eliminated in the long run.
C. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost. - The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that ?
A. monopolistically competitive firms charge prices equal to their marginal costs just like monopolists
B. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist
C. monopolistically competitive markets have free entry and exit just like a monopolistic market
D. monopolistically competitive firms produce beyond their efficient scale and so do monopolists - One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?
A. Since price is above marginal cost surplus is redistributed from buyers to sellers
B. monopolistically competitive firms earn economic profits in the long run
C. monopolistically competitive firms produce beyond their efficient scale
D. excess of the cost of production and this causes a deadweight loss. - In monopolistic competition ?
A. Firms face a perfectly elastic demand curve
B. All products are homogeneous
C. Firms make normal profits in the long run
D. There are barriers to entry to prevent entry - In monopolistic competition firms profit maximize where ?
A. Marginal revenue = Average revenue
B. Marginal revenue = Marginal cost
C. Marginal revenue = Average cost
D. Marginal revenue = Total cost - In monopolistic competition ?
A. There are few sellers
B. There are few buyers
C. There is one seller
D. There are many sellers
