12. In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit? A) monopoly B) oligopoly C) only perfect competition Dj only monopolistic competition E) both perfect competition and monopolistic competition 13. What does monopolistic competition have in common with perfect competition? A) a large number of firms and freedom of entry and exit Bj a standardized product C) product differentiation D) the ability to earn an economic profit in the long run Ej barriers to exit but no barriers to entry. 14. A firm in monopolistic competition influence its price and influence the market average price. A) can; can Bj can; cannot Cj cannot; can Dj cannot; cannot E) can; only in the short run can12. In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit? A) monopoly B) oligopoly C) only perfect competition Dj only monopolistic competition E) both perfect competition and monopolistic competition 13. What does monopolistic competition have in common with perfect competition? A) a large number of firms and freedom of entry and exit Bj a standardized product C) product differentiation D) the ability to earn an economic profit in the long run Ej barriers to exit but no barriers to entry. 14. A firm in monopolistic competition influence its price and influence the market average price. A) can; can Bj can; cannot Cj cannot; can Dj cannot; cannot E) can; only in the short run can6. A perfectly competitive firm can A) sell all of its output at the prevailing market price. Bj set a higher price to customers who are willing to pay more. Cj raise its price in order to increase its total revenue. D) sell additional output only by lowering its price. E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices. 7. The good produced by a monopoly A) has perfect substitutes. B) has no substitutes at all. C) has no close substitutes. D) can be easily duplicated. E) must be unable to be resold. B. Because of product differentiation, firms A) do not have to compete because their products are unique. Bj cannot compete on price. C) can compete on the basis of quality. D) are unable to compete by using advertising- E) must compete on only price. 9. A monopoly produces a product and there barriers to entry into the market. A) identical to its many competitors; are B) with no close substitutes; are C) identical to its many competitors; are no Dj with no close substitutes; are no E) slightly different from those of its many competitors; are