Quiz
ECO.8
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Questions in this quiz (14)
11. Monopolistic competition is characterized by which of the following attributes?
(i) Many sellers
(ii) Product differentiation
(iii) barriers to entry- A• I and (iii) only
- B• I and (ii) only
- C• Ii and (iii) only
- D• All of the above
22. In a monopolistically competitive market structure each firm sells a good that is
- A• slightly different from goods sold be other firms
- B• Produced at minimum average cost
- C• Identical to other goods sold in the market
- D• Produced at minimum marginal cost
33. In a monopolistically competitive industry, price is
- A• Above marginal cost since each firm is a price setter
- B• Equal to marginal cost since each firm is a price taker
- C• Below marginal cost since each firm is a price setter
- D• Always a fraction of marginal cost since each firm is a price setter.
44. Which of the following market structures is consistent with many sellers in the market place?
(i) perfect competition
(ii) monopolistic competition
(iii) monopoly
(iv) oligopoly- A• (i)only
- B• both (i) and (ii)
- C• (ii)only
- D• all of the above
55. Which of the following market structures do not have barriers to entry that restrict firms from entering the market?
(i) perfect competition
(ii) monopolistic competition
(iii) monopoly
(iv) oligopoly- A• (i)Only
- B• (i)and (ii) only
- C• (ii)and (iii) only
- D• All of the above are correct.
66. A profit-maximizing firm in a monopolistically competitive market differs from a firm in a perfectly competitive market because the firm in the monopolistically competitive market
- A• Faces a downward-sloping demand curve for its product
- B• Faces a horizontal demand curve at the market clearing price
- C• Is characterized by market share maximization
- D• Has no barriers to entry
77. The profit-maximizing rule for a firm in a monopolistically competitive market is to select the quantity at which
- A• Average revenue exceeds average total cost
- B• Marginal revenue is equal to marginal cost
- C• Average total cost is minimum
- D• Average total cost is equal to marginal revenue
88. A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?
- A• Revenue is always maximized along with profit
- B• Average revenue exceeds marginal revenue
- C• Marginal revenue exceeds average revenue.
- D• Average revenue is equal to marginal revenue.
99. Which of the following graphs would most likely represent profit-maximizing firm in a monopolistically competitive market?
- A• Panel A
- B• Panel B
- C• Panel C
- D• Panel D
1010. The firm depicted in panel b faces a horizontal demand curve. If panel b depicts a profit-maximizing firm,
- A• It would not be operating in a monopolistically competitive market
- B• It would not have excess capacity in its production as long as it is earning zero economic profit
- C• It is not able to choose the price at which it sells its product
- D• All the above
1111. Product differentiation causes the seller of a good to face what type of demand curve?
- A• Horizontal
- B• Vertical
- C• Downward sloping
- D• Upward sloping
1212. Which of the graphs shown would be consistent with a firm in a monopolistically competitive market that is minimizing its losses?
- A• Panel a
- B• Panel b
- C• Panel c
- D• Panel d
1313. If a firm is monopolistically competitive market was producing the level of output depicted as Qd as panel D, It would
- A• Be minimizing its losses
- B• Be operating excess capacity
- C• Not be maximizing its profit
- D• Be losing market share to other firms in the market
1414. Free entry into a market drives economic profit to
- AZero
- BThe Nash equilibrium
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- Description
- Economics Quiz on ECO.8, created by хомяк убийца on 27/05/2017.
- Author
- хомяк убийца
- Language
- English
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