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
Related Mcqs:
- 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 is true regarding the similarities and differences in monopolistic competition and monopoly ?
A. the monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve
B. the monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost
C. The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run
D. Both the monopolist and the monopolistic competitor operate at the efficient scale - 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 - Monopolistic competition differs from perfect competition primarily because ?
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 - 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 - 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 of firms are making abnormal profit other firms will enter and ?
A. The marginal cost will shift outwards
B. the demand curve will shift inwards
C. The average cost will shift downwards
D. The average variable cost will increase - In monopolistic competition ?
A. There are few sellers
B. There are few buyers
C. There is one seller
D. There are many sellers
