CHAPTER 16

Which of the following is a characteristic of monopolistic competition?

a. ownership of a key resource by a single firm

b. free entry

c. identical product

d. patents

• a

• b

• c

• d

The market for novels is

a. perfectly competitive.

b. a monopoly.

c. monopolistically competitive.

d. an oligopoly.

• a

• b

• c

• d

Monopolistic competition is a type of

a. oligopoly.

b. market structure.

c. price discrimination.

d. advertising strategy.

• a

• b

• c

• d

A monopolistically competitive market has characteristics that are similar to

a. a monopoly only.

b. a competitive firm only.

c. both a monopoly and a competitive firm.

d. neither a monopoly nor a competitive firm.

• a

• b

• c

• d

A typical firm in the US economy would be classified as

a. perfectly competitive.

b. imperfectly competitive.

c. a duopolist.

d. an oligopolist.

• a

• b

• c

• d

The typical firm in the US economy

a. has some degree of market power.

b. sells its product for a price that is equal to the marginal cost of producing the last unit.

c. is perfectly competitive.

d. is a monopoly.

• a

• b

• c

• d

Which of the following pairs illustrates the two extreme examples of market structures?

• competition and oligopoly

• competition and monopoly

• monopoly and monopolistic competition

• oligopoly and monopolistic competition

The general term for market structures that fall somewhere between monopoly and perfect competition is

a. incomplete markets.

b. imperfectly competitive markets.

c. oligopoly markets.

d. monopolistically competitive markets.

• a

• b

• c

• d

The two types of imperfectly competitive markets are

a. markets with advertising and markets with price competition.

b. public goods and common resources.

c. oligopoly and monopoly.

d. monopolistic competition and oligopoly.

• a

• b

• c

• d

The two types of imperfectly competitive markets are

a. monopoly and monopolistic competition.

b. monopoly and oligopoly.

c. monopolistic competition and oligopoly.

d. monopolistic competition and cartels.

• a

• b

• c

• d