Monopolistic competition

One of the assumptions of monopolistic competition is that it is made of a ...... number of firms

• large

• small

• moderate

In the short run, in monopolistic competition, the producers produce at a level of output that is...

• productively efficient

• allocatively efficient

• profit maximizing

The product differentiation is also known as....

• price competition

• non-price competition

• economics of scale

• price discrimination

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

In the long run all firms are making

• abnormal profit

• normal profit

• losses

Short-run losses encourage firms to...

• enter the industry

• leave the industry

• stay in the industry

What differs monopolistic competition from perfect competition?

• product differentiation

• long-run inefficiency

• barriers to entry

• the short-run profits and losses possibility

In monopolistic competition the firms assume to act.... each other.

• independently of

• dependently on

In monopolistic competition producers....

• have a full ability to set prices

• have some ability to set prices

• have no ability to set prices

In monopolistic competition, the demand curve for a firm is....

• relatively elastic

• relatively inelastic

• unit elastic