1. In the market for strawberries, individual firms face no barriers to entry, sell a homogeneous product, and have no control over the market price. This market is best described as a _____.

a. monopolistically competitive market

b. perfectly competitive market

c. Oligopoly

d. monopoly

2.) Which of the following is a barrier to entry that might be faced by a firm?

a. licensing requirements

b. low input prices

c. shortage

d. a high market equilibrium price

3.) The demand curve faced by firms in a perfectly competitive market is horizontal to reflect the fact that _____.

a. individual firms offer a homogeneous product

b. individual firms are unable to influence the market price

c. individual firms offer a differentiated product

d. individual firms are capable of influencing the market price

4.) Monopolistically competitive markets and perfectly competitive markets share some similarities but differ in a number of ways. One such difference between the two is that monopolistically competitive firms _____.

a. feature differentiated products

b. face some barriers to entry

c. feature homogeneous products

d. face no barriers to entry

5.) A health-care firm is looking to expand to international markets in an effort to increase profits. One potential location has only a few competing health-care providers, each holding a significant percentage of market share. Licensing requirements are high, but the firm may consider establishing a presence in the new location to enjoy _____.

a. the horizontal demand curves

b. the high prices that arise from perfect competition

c. the high prices that arise from monoplistic competition

d. the downward-sloping demand curves