Question 1

The long run outcome of the monopolistically competitive firm:

Accepted Answer

A)   occurs where price equals marginal cost.
B)   maximizes total surplus.
C)   creates welfare loss.
D)   does not maximize profits.E) B) and D)
F) C) and D)

Question 2

When a market consists of a few large firms and barriers to entry exist,it:

Accepted Answer

A)   must be perfectly competitive.
B)   is likely an oligopoly.
C)   must be monopolistically competitive.
D)   is likely a monopoly.E) C) and D)
F) B) and D)

Question 3

In the short run,monopolistically competitive firms behave like ________________,but in the long run,the profit of a firm is similar to that of ________________.

Accepted Answer

A)   monopolies; perfectly competitive firms
B)   perfectly competitive firms; monopolies
C)   monopolies; oligopolies
D)   oligopolies; perfectly competitive firmsE) A) and B)
F) A) and C)

Question 4

Monopolistically competitive firms can earn profits in the long run by:

Accepted Answer

A)   price discriminating.
B)   continually innovating to differentiate their product.
C)   further minimizing their costs.
D)   monopolistically competitive firms only earn zero profits in the long run.E) None of the above
F) A) and D)

Question 5

The two types of market structures that are imperfectly competitive are:

Accepted Answer

A)   perfect competition and monopolistic competition.
B)   monopolistic competition and oligopoly.
C)   oligopoly and monopoly.
D)   monopoly and perfect competition.E) A) and B)
F) All of the above

Question 6

Collusion is:

Accepted Answer

A)   buyers acting in unison against a company in efforts to change its practices.
B)   the act of firms undercutting one another in competition until zero profits are earned.
C)   the act of firms working together to make decisions about price and quantity.
D)   None of these statements is true.E) B) and D)
F) C) and D)

Question 7

Economists usually believe that:

Accepted Answer

A)   competition encourages innovation.
B)   innovation encourages competition.
C)   innovation leads to market power and should be regulated.
D)   market power leads to innovation.E) A) and B)
F) All of the above

Question 8

An oligopolist's production decision affects:

Accepted Answer

A)   its profits.
B)   the profits of other firms in the market.
C)   the prices charged by each firm.
D)   All of these statements are true.E) None of the above
F) A) and B)

Question 9

The outcome of a competitive oligopoly:

Accepted Answer

A)   is less efficient than that of colluding oligopolists.
B)   is more efficient than that of a perfectly competitive outcome.
C)   is more efficient than that of a monopolist.
D)   is less efficient than that of a monopolist.E) B) and C)
F) B) and D)

Exam 15: Monopolistic Competition and Oligopoly

The long run outcome of the monopolistically competitive firm:

Correct Answer
verified

The two types of market structures that are imperfectly competitive are:

Correct Answer
verified

When a market consists of a few large firms and barriers to entry exist,it:

Correct Answer
verified

Economists usually believe that:

Correct Answer
verified

Monopolistically competitive firms can earn profits in the long run by:

Correct Answer
verified

An oligopolist's production decision affects:

Correct Answer
verified

In the short run,monopolistically competitive firms behave like ,but in the long run,the profit of a firm is similar to that of .

Correct Answer
verified

The outcome of a competitive oligopoly:

Correct Answer
verified

Collusion is:

Correct Answer
verified

Exam 15: Monopolistic Competition and Oligopoly

The long run outcome of the monopolistically competitive firm:

Correct AnswerverifiedShow Answer

The two types of market structures that are imperfectly competitive are:

Correct AnswerverifiedShow Answer

When a market consists of a few large firms and barriers to entry exist,it:

Correct AnswerverifiedShow Answer

Economists usually believe that:

Correct AnswerverifiedShow Answer

Monopolistically competitive firms can earn profits in the long run by:

Correct AnswerverifiedShow Answer

An oligopolist's production decision affects:

Correct AnswerverifiedShow Answer

In the short run,monopolistically competitive firms behave like ________________,but in the long run,the profit of a firm is similar to that of ________________.

Correct AnswerverifiedShow Answer

The outcome of a competitive oligopoly:

Correct AnswerverifiedShow Answer

Collusion is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the short run,monopolistically competitive firms behave like ,but in the long run,the profit of a firm is similar to that of .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified