1.Under monopolistic competition, there are:

Group of answer choices

significant barriers to entry.

few barriers to entry.

only a few buyers in the market.

only a small number of sellers in the market.

2.Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as:

Group of answer choices

the marginal benefit of advertising is positive.

the marginal benefit of advertising exceeds the marginal cost of advertising.

the marginal cost of advertising exceeds the marginal benefit of advertising.

the marginal cost of advertising is positive.

3.There are many restaurants in a city, each one offeringfood and services that differfrom those of its competitors. There is also free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day. The restaurant industry in this city is best categorized as:

Group of answer choices

an oligopoly.

perfectly competitive.

monopolistically competitive.

a pure monopoly.

4.A monopolistically competitive industry has many firms that sell differentiated products.

Group of answer choices

True

False

5.Significant barriers to entry exist in a monopolistically competitive industry.

Group of answer choices

True

False

6.A monopolistically competitive firm faces a downward-sloping demand curve.

Group of answer choices

True

False