Micro Unit 4- Practice Questions #1

This video introduces Unit 4 of Microeconomics, focusing on imperfect competition, and presents a practice question to reinforce the concepts discussed.

What is the primary focus of Microeconomics Unit 4?

• Monetary policy

• Perfect competition

• Imperfect competition

• Fiscal policy

Which of the following is NOT a characteristic of imperfect competition?

• Product differentiation

• Barriers to entry

• Many sellers

• Price takers

In the context of imperfect competition, what role do barriers to entry play?

• They ensure all firms have equal market share

• They prevent new firms from entering the market

• They increase market competition

• They reduce product differentiation

Which market structure is characterized by a few firms dominating the market?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

What is a common feature of firms in monopolistic competition?

• Product differentiation

• Single seller

• Price leadership

• Identical products