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WorksheetsMonopolistic competition
Total questions: 14
Worksheet time: 6mins
Which one of the following statements is not a characteristic of monopolistic competition?
Ease of entry into the industry
Product differentiation
A relatively large number of sellers
A homogenous product
Monopolistic competition is a market structure in which few firms sell similar products
True
False
Which of the following industries is the best example of monopolistic competition?
Wheat
Restaurant
Automobile
Water service
In long-run equilibrium in a monopolistically competitive market, firms typically:
earn a normal profit
charge a price equal to marginal cost
earn an above-normal profit
charge a price equal to marginal revenue
Under monopolistic competition price discrimination can be made easily.
True
False
Under monopolistic competition, a firm faces a perfectly elastic demand curve.
True
False
Similar to firms in perfectly competitive markets, firms in monopolistically competitive markets can enter and exit the market without restriction so profits are driven to zero in the long run
True
False
What type of products will firms produce in monopolistic competition?
Firms produce significantly differentiated products
Firms produce slightly differentiated products
Firms produce homogenous products with one modification
Firms produce a variety of different products
How can products be differentiated?
Brand name
Colour
Appearance
Packaging design
All of the above
Monopolistic competitors in long-run equilibrium will generally find that they are earning economic profits
True
False
Choose the competitor(s) of STARBUCKS
McCafe
Haagen-Dazs
Dinshaws
Dunkin donuts
The Hershey's Company
Choose the competitor(s) of H&M
Nike
The Ordinary
Macy's
GAP
Choose the competitor(s) of Bayerische Motoren Werke
Ducati
Volkswagen
Harley-Davidson
Fiat
Yamaha
Guess the logo
(Hint: It is a part of the monopolistic market)
(a)
