Monopolistic Competition

1. 1 A monopolistically competitive firm has ___________ power to set the price of
   its product because ____________.

   1. Ano; there are no barriers to entry
   2. Bsome; there are barriers to entry.
   3. Csome; of product differentiation.
   4. Dno; of product differentiation.
2. 2One difference between perfect competition and monopolistic competition is that _______________.

   1. Aa perfectly competitive industry has fewer firms.
   2. Bmonopolistic competition has barriers to entry.
   3. Cfirms in monopolistic competition face a downward-sloping demand
      curve.
   4. Din perfect competition, firms produce slightly differentiated products.
3. 3When firms in monopolistic competition are earning an economic profit, firms will ____________.

   1. Aenter the industry, and demand will decrease for the original firms.
   2. Benter the industry, and demand will increase for the original firms.
   3. Cexit the industry, and demand will increase for the firms that remain.
   4. Dexit the industry, and demand will decrease for the firms that remain.
4. 4In monopolistic competition, a firm maximizes its profit by selecting an output at which marginal cost equals ___________.

   1. Aprice.
   2. Bmarginal revenue.
   3. Czero.
   4. Dtotal revenue.

Description

Business/Economics Quiz on Monopolistic Competition, created by Ricci Morales on 14/12/2018.

Author

Ricci Morales

Language

English

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business/economics

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