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- 1. Multiple Choice
One of the assumptions of monopolistic competition is that it is made of a ...... number of firms
large
small
moderate
- 2. Multiple Choice
In the short run, in monopolistic competition, the producers produce at a level of output that is...
productively efficient
allocatively efficient
profit maximizing
- 3. Multiple Choice
The product differentiation is also known as....
price competition
non-price competition
economics of scale
price discrimination
- 4. Multiple Choice
In the long run, in monopolistic competition, the producers will produce at a level of output .....
that is socially optimum
where AC is at a minimum
where MC=MR
- 5. Multiple Choice
In the long run all firms are making
abnormal profit
normal profit
losses
- 6. Multiple Choice
Short-run losses encourage firms to...
enter the industry
leave the industry
stay in the industry
- 7. Multiple Choice
What differs monopolistic competition from perfect competition?
product differentiation
long-run inefficiency
barriers to entry
the short-run profits and losses possibility
- 8. Multiple Choice
In monopolistic competition the firms assume to act.... each other.
independently of
dependently on
- 9. Multiple Choice
In monopolistic competition producers....
have a full ability to set prices
have some ability to set prices
have no ability to set prices
- 10. Multiple Choice
In monopolistic competition, the demand curve for a firm is....
relatively elastic
relatively inelastic
unit elastic
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