Imperfect Competition

What are the three types of imperfectly competitive markets?

• Monopoly, oligopoly, and monopolistic competition

• Perfect competition, monopoly, and oligopoly

• Monopoly, monopolistic competition, and perfect competition

• Oligopoly, monopolistic competition, and perfect competition

In which market structure do firms earn zero economic profit in the long run?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

What is the distinguishing factor between monopolistic competition and perfect competition?

• Product differentiation

• High barriers to entry

• Low barriers to entry

• Unique products

Which market structure has high barriers to entry and a few dominant firms?

• Monopoly

• Monopolistic competition

• Perfect competition

• Oligopoly

What gives imperfectly competitive firms pricing power?

• Low barriers to entry

• Unique products

• High competition

• Price-taking behavior

What type of demand curve do perfectly competitive firms have?

• Horizontal

• Vertical

• Upward sloping

• Downward sloping

What is the relationship between marginal revenue and price for imperfectly competitive firms?

• Marginal revenue is always equal to price

• Marginal revenue is always greater than price

• Marginal revenue is always less than price

• Marginal revenue is unrelated to price

Where do perfectly competitive firms produce in terms of allocative efficiency?

• Where marginal cost equals marginal benefit

• Where price equals marginal cost

• Where price is above marginal cost

• Where price is below marginal cost

What is the profit-maximizing quantity for imperfectly competitive firms?

• Where marginal cost equals marginal revenue

• Where price equals marginal cost

• Where price is above marginal cost

• Where price is below marginal cost

What is the consequence of imperfectly competitive firms not producing at the allocatively efficient quantity?

• Higher profits

• Lower prices

• Deadweight loss

• Increased competition