Question 1

There are high barriers to entry into a monopolistically competitive market.

Accepted Answer

A) True 
 B)False  False

Question 2

Figure 7.3
-For the monopolistic competitor depicted in Figure 7.3, what is the profit-maximizing quantity?

Accepted Answer

A)  0 
B)  75 
C)  100 
D)  120 
A)  0 
B)  75 
C)  100 
D)  120 B

Question 3

The industry of fine art auction houses is

Accepted Answer

A)  a duopoly. 
B)  a monopoly. 
C)  monopolistically competitive. 
D)  perfectly competitive. 
A)  a duopoly. 
B)  a monopoly. 
C)  monopolistically competitive. 
D)  perfectly competitive. A

Question 4

Both the perfect competitor and the monopolistic competitor will produce at the point where average total cost is minimized.

Accepted Answer

A) True 
 B)False

Question 5

Duopoly is an industry structure in which each firm produces two products.

Accepted Answer

A) True 
 B)False

Question 6

Firms are discouraged from engaging in opportunistic behavior by their desire to have _________ _________ with their customers.

Accepted Answer

The answer of Firms are discouraged from engaging in opportunistic...

Question 7

What general rule does a firm follow in using price discrimination to increase profits?

Accepted Answer

Charging higher pric

Question 8

Which of the following is a characteristic of both perfect competition and monopolistic competition?

Accepted Answer

A)  The firm seeks to differentiate its product from those of its competitors. 
B)  Firms sell a homogeneous product. 
C)  In the long run, the firm will produce the output which minimizes average total cost. 
D)  In the long run, the firm will earn zero economic profit. 
A)  The firm seeks to differentiate its product from those of its competitors. 
B)  Firms sell a homogeneous product. 
C)  In the long run, the firm will produce the output which minimizes average total cost. 
D)  In the long run, the firm will earn zero economic profit.

Question 9

All of the following are characteristics of an oligopoly EXCEPT

Accepted Answer

A)  firms engage in marginal-cost pricing. 
B)  small number of firms. 
C)  high barriers to entry. 
D)  interdependence. 
A)  firms engage in marginal-cost pricing. 
B)  small number of firms. 
C)  high barriers to entry. 
D)  interdependence.

Question 10

Which of the following statements is true for the monopolistically competitive firm in the long-run?

Accepted Answer

A)  P $\gt$MC and P = ATC. 
B)  MC $\gt$ P $\gt$ ATC. 
C)  P $\gt$ MC $\gt$ATC. 
D)  P = MC = MR. 
A)  P $\gt$MC and P = ATC. 
B)  MC $\gt$ P $\gt$ ATC. 
C)  P $\gt$ MC $\gt$ATC. 
D)  P = MC = MR.

Question 11

In the long-run equilibrium situation for monopolistic competition, what is the relationship among price, marginal cost, and average total cost?

Accepted Answer

Price will exceed ma

Question 12

Monopolistic competition is a type of market structure.

Accepted Answer

A) True 
 B)False

Question 13

The monopolistic competitor advertises in order to

Accepted Answer

A)  attract good employees. 
B)  achieve product differentiation. 
C)  signal the nature of his cost structure to his competitors. 
D)  make the demand curve he faces more elastic. 
A)  attract good employees. 
B)  achieve product differentiation. 
C)  signal the nature of his cost structure to his competitors. 
D)  make the demand curve he faces more elastic.

Question 14

Both the perfect competitor and the monopolistic competitor produce at the point where price equals marginal cost.

Accepted Answer

A) True 
 B)False

Question 15

When the two firms in a duopoly have agreed to split up the market for their product, we say they have _________.

Accepted Answer

The answer of When the two firms in a duopoly...

Question 16

Both the perfect competitor and the monopolistic competitor seek to maximize profit.

Accepted Answer

A) True 
 B)False

Question 17

Signaling occurs as part of

Accepted Answer

A)  advertising. 
B)  opportunistic behavior. 
C)  noncooperative behavior. 
D)  price leadership. 
A)  advertising. 
B)  opportunistic behavior. 
C)  noncooperative behavior. 
D)  price leadership.

Question 18

Figure 7.6
-Using Figure 7.6, how much profit would this monopolistic competitor earn if she were regulated by the government to produce 60 units and to charge a price corresponding to that quantity on the demand curve?

Accepted Answer

A)  $0. 
B)  Less than $1000. 
C)  Between $1000 and $2000. 
D)  Over $2000. 
A)  $0. 
B)  Less than $1000. 
C)  Between $1000 and $2000. 
D)  Over $2000.

Question 19

Which market structure(s) is (are) characterized by strategic dependence?

Accepted Answer

A)  perfect competition. 
B)  oligopoly. 
C)  perfect competition and monopoly. 
D)  monopoly and oligopoly. 
A)  perfect competition. 
B)  oligopoly. 
C)  perfect competition and monopoly. 
D)  monopoly and oligopoly.

Question 20

Table 7.1   Refer to Table 7.1. What price will the bookstore charge in order to maximize profit?

Accepted Answer

A)  $7.00 
B)  $6.00 
C)  $5.00 
D)  $4.00 
A)  $7.00 
B)  $6.00 
C)  $5.00 
D)  $4.00

There are high barriers to entry into a monopolistically competitive market.

Figure 7.3 -For the monopolistic competitor depicted in Figure 7.3, what is the profit-maximizing quantity?

The industry of fine art auction houses is

Both the perfect competitor and the monopolistic competitor will produce at the point where average total cost is minimized.

Duopoly is an industry structure in which each firm produces two products.

Firms are discouraged from engaging in opportunistic behavior by their desire to have _ _ with their customers.

What general rule does a firm follow in using price discrimination to increase profits?

Which of the following is a characteristic of both perfect competition and monopolistic competition?

All of the following are characteristics of an oligopoly EXCEPT

Which of the following statements is true for the monopolistically competitive firm in the long-run?

In the long-run equilibrium situation for monopolistic competition, what is the relationship among price, marginal cost, and average total cost?

Monopolistic competition is a type of market structure.

The monopolistic competitor advertises in order to

Both the perfect competitor and the monopolistic competitor produce at the point where price equals marginal cost.

When the two firms in a duopoly have agreed to split up the market for their product, we say they have _________.

Both the perfect competitor and the monopolistic competitor seek to maximize profit.

Signaling occurs as part of

Figure 7.6 -Using Figure 7.6, how much profit would this monopolistic competitor earn if she were regulated by the government to produce 60 units and to charge a price corresponding to that quantity on the demand curve?

Which market structure(s) is (are) characterized by strategic dependence?

Table 7.1 Refer to Table 7.1. What price will the bookstore charge in order to maximize profit?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

Exam 7: In Between the Extremes: Imperfect Competition

There are high barriers to entry into a monopolistically competitive market.

Figure 7.3 -For the monopolistic competitor depicted in Figure 7.3, what is the profit-maximizing quantity?

The industry of fine art auction houses is

Both the perfect competitor and the monopolistic competitor will produce at the point where average total cost is minimized.

Duopoly is an industry structure in which each firm produces two products.

Firms are discouraged from engaging in opportunistic behavior by their desire to have _________ _________ with their customers.

What general rule does a firm follow in using price discrimination to increase profits?

Which of the following is a characteristic of both perfect competition and monopolistic competition?

All of the following are characteristics of an oligopoly EXCEPT

Which of the following statements is true for the monopolistically competitive firm in the long-run?

In the long-run equilibrium situation for monopolistic competition, what is the relationship among price, marginal cost, and average total cost?

Monopolistic competition is a type of market structure.

The monopolistic competitor advertises in order to

Both the perfect competitor and the monopolistic competitor produce at the point where price equals marginal cost.

When the two firms in a duopoly have agreed to split up the market for their product, we say they have _________.

Both the perfect competitor and the monopolistic competitor seek to maximize profit.

Signaling occurs as part of

Figure 7.6 -Using Figure 7.6, how much profit would this monopolistic competitor earn if she were regulated by the government to produce 60 units and to charge a price corresponding to that quantity on the demand curve?

Which market structure(s) is (are) characterized by strategic dependence?

Table 7.1 Refer to Table 7.1. What price will the bookstore charge in order to maximize profit?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

Firms are discouraged from engaging in opportunistic behavior by their desire to have _ _ with their customers.