Exam 11: Product Differentiation, Monopolistic Competition, and Oligopoly

A monopolistically competitive firm can increase its price without losing all its market share because of product differentiation.

Which of the following is the least likely example of a monopolistically competitive firm?

When oligopolists compete in quantities, they are in

Advertising may do any of the following except

A monopolistically competitive firm has a downward-sloping demand curve because

A profit-maximizing firm will differentiate its products only if doing so incurs no additional costs.

Which of the following phenomena is not explained by the existence of product differentiation?

Strategic behavior occurs in monopolistic competition.

Firms leave a monopolistically competitive industry when

Product differentiation exists when producers perceive the products to be different.

To say that game theory assumes people make purposeful choices with limited resources implies that players in a game seek to

Exhibit 11-2 -Refer to Exhibit 11-2 for a profit-maximizing firm in a monopolistically competitive market. In the long run, the firm

Oligopoly is a market in which a few sellers offer similar or identical products.

There is limited entry in a monopolistically competitive industry.

Some economists say that advertising is wasteful because they believe that

Compared with a monopoly, long-run equilibrium in a monopolistically competitive industry results in

A monopolistic competitor behaves like a monopoly in the short run.

Game theory is often used to explain decision-making in

Which of the following describes an industry in which there are a few interdependent firms?

Strategic behavior refers to