Which of the following is a characteristic of monopolistic competition?

Monopolistic Competition and Oligopoly Quiz

Quiz
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Business
•
9th - 12th Grade
•
Medium
awe TAIWO
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20 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Price-taking behavior
Homogeneous products
Free entry and exit
Significant barriers to entry
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In monopolistic competition, firms have:
No control over price
Perfect substitutes for their products
Market power due to product differentiation
Identical cost curves
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the long run, a firm in monopolistic competition:
Earns economic profit
Produces at minimum ATC
Produces with excess capacity
Has marginal revenue equal to price
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A firm in monopolistic competition maximizes profit where:
Price = marginal cost
Marginal revenue = marginal cost
Average total cost = price
Price = average variable cost
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A monopolistically competitive firm in long-run equilibrium will:
Earn zero economic profit
Produce at efficient scale
Have MR above MC
Face a perfectly elastic demand curve
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Product differentiation in monopolistic competition leads to:
Lower prices than perfect competition
Greater efficiency
Brand loyalty and some price-setting ability
No deadweight loss
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Compared to perfect competition, monopolistically competitive firms in the long run:
Produce more
Charge a lower price
Operate at efficient scale
Have higher average total cost
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