Microeconomics Exam 3

What is the correct decreasing order of competitiveness for the market structures?

• perfectly competitive, monopolistic, oligopoly, monopoly

• monopoly, oligopoly, monopolistic, perfectly competitive

• perfectly competitive, monopoly, oligopoly, monopolistic

• oligopoly, monopoly, perfectly competitive, monopolistic

Many firms, identical products, low barriers to entry; ex. growing wheat or poultry farm.

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Many firms, differentiated products, low barriers to entry; ex. clothing stores or restaurants.

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Few firms, identical or differentiated products, high barriers to entry; ex. manufacturing computers or automobiles.

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

One firm, unique product, entry blocked; ex. GA power or providing tap water.

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Perfectly competitive firms are price takers and earn zero economic profit in the long run.

• True

• False

Total Revenue (TR) =

Marginal Revenue (MR) =

Marginal Cost (MC) =

Profit =