Worksheetsmonopolistic competiton
Total questions: 10
Worksheet time: 5mins
Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition?
In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition.
In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product.
In perfect competition there are many firms, but in monopolistic competition there are only a few firms.
In perfect competition there are few consumers, but in monopolistic competition there are many consumers.
Which of the following market structures results in allocative efficiency?
Monopoly
Monopolistic Competition
Perfect Competition
Oligopoly
Which is true of a monopolistically competitive firm in long-run equilibrium?
Price equals average total cost but is greater than marginal cost.
Price equals marginal cost and average total cost.
Price equals marginal cost and is greater than average total cost.
The firm earns positive economic profits by producing at minimum average cost.
The demand curve is downward sloping because:
there are a large number of firms
the product is produced by using scarce resources
it is easy for firms to enter or exit the market
the products produced by different firms are not identical
which of the following is true considering Monopolisticcompetitive?
In long-run equilibrium, average total costs are minimized.
In long-run equilibrium, the price is greater than the marginal cost.
In long-run equilibrium, the firm is earning economic profits.
In long-run equilibrium, the marginal benefit exceeds the price charged by the firms.
The graph shows a monopolistically competitive firm:
making a profit in the long-run
incurring a loss in the short-run
making a profit in the short-run
breaking even in the long-run
In the long-run, the ATC will be tangent to the demand curve at:
Q3
Q1
NONE
Q2
Firms in monopolistic competition can leave the market easily in the long run
TRUE
FALSE
Which of the following is true about monopolistic competition
all products are the same in the market
barriers to entry into the market are low
Which of the following has the most number of firms?
monopoly
oligopoly
monopolistic competition
perfect competition
