Question 1

Firms in which of the following industries can earn an economic profit in the long run?

Accepted Answer

A) both monopolistic competition and monopoly 
B) perfect competition 
C) monopoly 
D) monopolistic competition 
E) monopolistic competition and perfect competition 
A) both monopolistic competition and monopoly 
B) perfect competition 
C) monopoly 
D) monopolistic competition 
E) monopolistic competition and perfect competition

Question 2

What three characteristics do all games have in common?

Accepted Answer

The all ha

Question 3

When a monopolistically competitive firm's demand curve shifts leftward,what happens to its marginal revenue curve?

Accepted Answer

A) Nothing,the marginal revenue curve is unchanged. 
B) It disappears. 
C) It shifts rightward. 
D) It shifts leftward. 
E) None of the above is correct because the effect on the marginal revenue curve depends on whether the demand was initially elastic or inelastic. 
A) Nothing,the marginal revenue curve is unchanged. 
B) It disappears. 
C) It shifts rightward. 
D) It shifts leftward. 
E) None of the above is correct because the effect on the marginal revenue curve depends on whether the demand was initially elastic or inelastic.

Question 4

The marginal revenue curve facing a monopolistically competitive firm

Accepted Answer

A) lies on its demand curve. 
B) lies above its demand curve. 
C) lies below its demand curve. 
D) is equal to its price curve. 
E) is parallel to its demand curve. 
A) lies on its demand curve. 
B) lies above its demand curve. 
C) lies below its demand curve. 
D) is equal to its price curve. 
E) is parallel to its demand curve.

Question 5

The United Company competes with many other firms each producing slightly different products.Firms freely enter and exit this industry.The type of industry United Company operates in is

Accepted Answer

A) a monopoly. 
B) monopolistic competition. 
C) oligopoly. 
D) perfect competition. 
E) oligopolistic monopoly. 
A) a monopoly. 
B) monopolistic competition. 
C) oligopoly. 
D) perfect competition. 
E) oligopolistic monopoly.

Question 6

Firms in monopolistic competition

Accepted Answer

A) face a downward-sloping demand curve. 
B) cannot charge a markup because there are no dominant firms. 
C) definitely do not benefit from advertising. 
D) produce at the efficient scale in the long run. 
E) generally have low to nonexistent selling costs. 
A) face a downward-sloping demand curve. 
B) cannot charge a markup because there are no dominant firms. 
C) definitely do not benefit from advertising. 
D) produce at the efficient scale in the long run. 
E) generally have low to nonexistent selling costs.

Question 7

In an oligopoly,there are

Accepted Answer

A) many firms and barriers to entry. 
B) many firms and no barriers to entry. 
C) few firms and barriers to entry. 
D) few firms and no barriers to entry. 
E) barriers to entry and only one firm. 
A) many firms and barriers to entry. 
B) many firms and no barriers to entry. 
C) few firms and barriers to entry. 
D) few firms and no barriers to entry. 
E) barriers to entry and only one firm.

Question 8

For a firm in monopolistic competition,the efficient scale is the amount of output at which ________ is a minimum.

Accepted Answer

A) fixed cost 
B) average total cost 
C) average variable cost 
D) average fixed cost 
E) marginal cost 
A) fixed cost 
B) average total cost 
C) average variable cost 
D) average fixed cost 
E) marginal cost

Question 9

Monopolistic competition is defined as a type of market structure in which

Accepted Answer

A) many firms produce the good. 
B) firms produce a homogeneous good. 
C) there are barriers to entry. 
D) firms can make an economic profit in the long run. 
E) firms can easily enter the market but cannot easily exit from it. 
A) many firms produce the good. 
B) firms produce a homogeneous good. 
C) there are barriers to entry. 
D) firms can make an economic profit in the long run. 
E) firms can easily enter the market but cannot easily exit from it.

Question 10

The range in which a duopoly's output falls is less than or equal to the output level in ________ and more than or equal to the output level in ________.

Accepted Answer

A) monopolistic competition;monopoly 
B) monopolistic competition;perfect competition 
C) perfect competition;monopoly 
D) monopoly;monopolistic competition 
E) monopoly;perfect competition 
A) monopolistic competition;monopoly 
B) monopolistic competition;perfect competition 
C) perfect competition;monopoly 
D) monopoly;monopolistic competition 
E) monopoly;perfect competition

Question 11

The prisoners' dilemma is an example of

Accepted Answer

A) product differentiation. 
B) collusion. 
C) game theory. 
D) monopolistic competition. 
E) decision making in a monopoly. 
A) product differentiation. 
B) collusion. 
C) game theory. 
D) monopolistic competition. 
E) decision making in a monopoly.

Question 12

Which of the following is found ONLY in oligopoly?

Accepted Answer

A) Producers sell identical products. 
B) One firm's actions affect another firm's profit. 
C) Entry into the industry is blocked. 
D) Sellers face a downward sloping demand curve for their product. 
E) The firm's demand curve is horizontal. 
A) Producers sell identical products. 
B) One firm's actions affect another firm's profit. 
C) Entry into the industry is blocked. 
D) Sellers face a downward sloping demand curve for their product. 
E) The firm's demand curve is horizontal.

Question 13

"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is the previous statement correct or incorrect?

Accepted Answer

The statement is incorrect.A firm in mon

Question 14

Excess capacity exists when a firm produces

Accepted Answer

A) more than the profit-maximizing level of output. 
B) less than the quantity that minimizes average total cost. 
C) less than the quantity that minimizes marginal cost. 
D) more than the quantity that minimizes marginal cost. 
E) None of the above answers is correct. 
A) more than the profit-maximizing level of output. 
B) less than the quantity that minimizes average total cost. 
C) less than the quantity that minimizes marginal cost. 
D) more than the quantity that minimizes marginal cost. 
E) None of the above answers is correct.

Question 15

Excess capacity is the

Accepted Answer

A) difference between a perfectly competitive firm's and a monopolistically competitive firm's output. 
B) difference between a perfectly competitive firm's and a monopoly's output. 
C) output at the maximum point of the ATC curve. 
D) difference between the price charged by a monopoly and a monopolistically competitive firm with the same costs. 
E) None of the above answers is correct. 
A) difference between a perfectly competitive firm's and a monopolistically competitive firm's output. 
B) difference between a perfectly competitive firm's and a monopoly's output. 
C) output at the maximum point of the ATC curve. 
D) difference between the price charged by a monopoly and a monopolistically competitive firm with the same costs. 
E) None of the above answers is correct.

Question 16

In both monopolistic competition and perfect competition,

Accepted Answer

A) firms sell identical products. 
B) there is easy entry and exit. 
C) firms are price takers. 
D) firms face horizontal demand curves. 
E) the marginal revenue curve and the demand curve are the same. 
A) firms sell identical products. 
B) there is easy entry and exit. 
C) firms are price takers. 
D) firms face horizontal demand curves. 
E) the marginal revenue curve and the demand curve are the same.

Question 17

An example of a firm in monopolistic competition is

Accepted Answer

A) your local water company. 
B) the sole cable television company. 
C) the many Chinese restaurants in San Francisco. 
D) Kansas Power and Light,the sole provider of electricity in Kansas City. 
E) Shaniq,a wheat farmer. 
A) your local water company. 
B) the sole cable television company. 
C) the many Chinese restaurants in San Francisco. 
D) Kansas Power and Light,the sole provider of electricity in Kansas City. 
E) Shaniq,a wheat farmer.

Question 18

The range of output for a duopoly ranges between the

Accepted Answer

A) perfectly competitive outcome and the monopolistically competitive outcome. 
B) efficient scale and the perfectly competitive outcome. 
C) minimum of ATC and the efficient scale. 
D) monopoly outcome and the perfectly competitive outcome. 
E) short-run perfectly competitive outcome and the long-run perfectly competitive outcome. 
A) perfectly competitive outcome and the monopolistically competitive outcome. 
B) efficient scale and the perfectly competitive outcome. 
C) minimum of ATC and the efficient scale. 
D) monopoly outcome and the perfectly competitive outcome. 
E) short-run perfectly competitive outcome and the long-run perfectly competitive outcome.

Question 19

Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?

Accepted Answer

A) The firm earns zero economic profit. 
B) Price is equal to average total cost. 
C) Production occurs at minimum average total cost. 
D) Marginal revenue is equal to marginal cost. 
E) Price exceeds marginal revenue. 
A) The firm earns zero economic profit. 
B) Price is equal to average total cost. 
C) Production occurs at minimum average total cost. 
D) Marginal revenue is equal to marginal cost. 
E) Price exceeds marginal revenue.

Question 20

A firm in monopolistic competition has ________ demand curve.

Accepted Answer

A) a downward-sloping 
B) an upward-sloping 
C) a vertical 
D) a horizontal 
E) a U-shaped 
A) a downward-sloping 
B) an upward-sloping 
C) a vertical 
D) a horizontal 
E) a U-shaped

Firms in which of the following industries can earn an economic profit in the long run?

What three characteristics do all games have in common?

When a monopolistically competitive firm's demand curve shifts leftward,what happens to its marginal revenue curve?

The marginal revenue curve facing a monopolistically competitive firm

The United Company competes with many other firms each producing slightly different products.Firms freely enter and exit this industry.The type of industry United Company operates in is

Firms in monopolistic competition

In an oligopoly,there are

For a firm in monopolistic competition,the efficient scale is the amount of output at which ________ is a minimum.

Monopolistic competition is defined as a type of market structure in which

The range in which a duopoly's output falls is less than or equal to the output level in and more than or equal to the output level in .

The prisoners' dilemma is an example of

Which of the following is found ONLY in oligopoly?

"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is the previous statement correct or incorrect?

Excess capacity exists when a firm produces

Excess capacity is the

In both monopolistic competition and perfect competition,

An example of a firm in monopolistic competition is

The range of output for a duopoly ranges between the

Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?

A firm in monopolistic competition has ________ demand curve.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 13: Monopolistic Competition and Oligopoly

Firms in which of the following industries can earn an economic profit in the long run?

What three characteristics do all games have in common?

When a monopolistically competitive firm's demand curve shifts leftward,what happens to its marginal revenue curve?

The marginal revenue curve facing a monopolistically competitive firm

The United Company competes with many other firms each producing slightly different products.Firms freely enter and exit this industry.The type of industry United Company operates in is

Firms in monopolistic competition

In an oligopoly,there are

For a firm in monopolistic competition,the efficient scale is the amount of output at which ________ is a minimum.

Monopolistic competition is defined as a type of market structure in which

The range in which a duopoly's output falls is less than or equal to the output level in ________ and more than or equal to the output level in ________.

The prisoners' dilemma is an example of

Which of the following is found ONLY in oligopoly?

"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is the previous statement correct or incorrect?

Excess capacity exists when a firm produces

Excess capacity is the

In both monopolistic competition and perfect competition,

An example of a firm in monopolistic competition is

The range of output for a duopoly ranges between the

Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?

A firm in monopolistic competition has ________ demand curve.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

The range in which a duopoly's output falls is less than or equal to the output level in and more than or equal to the output level in .