Which of the following characteristics is not common to monopolistic competition and perfect competition?
A) Entry barriers into the industry are low
B) The market demand curve is downward- sloping
C)Firms take market prices as given.
D)Firms act to maximize profit.
Click the card to flip 👆
1 / 49
Terms in this set (49)
Which of the following characteristics is not common to monopolistic competition and perfect competition?
A) Entry barriers into the industry are low
B) The market demand curve is downward- sloping
C)Firms take market prices as given.
D)Firms act to maximize profit.
C)Firms take market prices as given.
A major difference between monopolistic competition and perfect competition is
A)the barriers to entry in the two markets.
B)that products are not standardized in monopolistic competition unlike in perfect competition.
C)the number of sellers in the markets.
D)the degree by which the market demand curves slope downwards.
B)that products are not standardized in monopolistic competition unlike in perfect competition
Which of the following is true for a firm with a downward-sloping demand curve for its product?
A)Price, average revenue, and marginal revenue are all equal.
B)Price equals average revenue but is greater than marginal revenue.
C)Price equals average revenue but is less than marginal revenue.
D)Price, average revenue, and marginal revenue are all different.
B)Price equals average revenue but is greater than marginal revenue
If a firm faces a downward-sloping demand curve?
A)it must reduce its price to sell more units.
B)it will always make a profit.
C)the demand for its product must be inelastic.
D)it can control both price and quantity sold.
A)it must reduce its price to sell more units
A monopolistically competitive firm will
A)produce an output level that is productively and allocatively efficient.
B)always produce at the minimum efficient scale of production.
C)charge the same price as its competitors do.
D)have some control over its price because its product is differentiated.
D)have some control over its price because its product is differentiated
For a monopolistically competitive firm, marginal revenue
A) is less than the price.
B) is greater than the price.
C) and price are unrelated
D) equals the price.
A) is less than the price
If the demand curve for a firm is downward-sloping, its marginal revenue curve
A) is the same as the demand curve.
B) will lie above the demand curve.
C) will lie below the demand curve
D) is horizontal
C) will lie below the demand curve
Which of the following statements is true?
A) The marginal revenue of a monopolistically competitive firm will be always be positive
B)The marginal revenue of a monopolistically competitive firm will be positive at high price and negative at low prices
C)Because the demand curve for a monopolistically competitive firm is downward-sloping its marginal revenue will be negative
D)The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices
B)The marginal revenue of a monopolistically competitive firm will be positive at high price and negative at low prices
The demand curve of a monopolistically competitive firm
A)is horizontal because the firm must cut its price to sell more.
B)is perfectly elastic.
C)is downward-sloping because it must cuts its price to sell more
D)is downward-sloping because it sells an identical product
C)is downward-sloping because it must cuts its price to sell more
Every firm that has the ability to affect the price of the good or service it sells will
A)have a marginal revenue curve that lies below its demand curve.
B)have a perfectly elastic demand curve.
C)earn a short-run profit but break even in the long run
D) shut down in the short run
A)have a marginal revenue curve that lies below its demand curve