Question 1 1 pts There are no barriers to entry in which two market structures? (O Perfect competition and oligopoly O Perfect competition and pure monopoly (O Oligopoly and monopolistic competition O Monopolistic competition and perfect competition O Oligopoly and pure monopoly Question 2 1 pts In economic theory, purely competitive firms, monopolists, and monopolistically competitive firms all: O face downward-sloping demand curves. () maximize profits where MR = MC. O None of these. O set price equal to marginal cost to decide the level of output. O are able to set prices, depending on \"what the market will bear. Question 3 1 pts Under monopolistic competition, demand and marginal revenue curves are downward-sloping because ... O there are a few large firms in the industry and each has monopoly power over prices. O there is free entry into and exit out of the market. (O demand and marginal revenue curves are always downward sloping. O product differentiation allows each firm a small degree of monopoly power. O mutual interdependence between all firms in the industry leads to informal collusion. U L Question 4 1 pts Suppose the graph below represents a firm in a monopolistically competitive market. Is this market in long-run equilibrium? - - " - - Cost and Price () i - - Quantity (O Yes, because a monopolistically competitive market can maintain positive economic profit in the long run. (O There is not enough information given to answer the question. O No, because the monopolistically competitive firm is not earning a profit. (O No, because a monopolistically competitive market cannot maintain positive economic profit in the long run. O Yes, because the monopolistically competitive firm is not earning economic profit. Question 5 1 pts Which one of the following statements is false? O Monopolistically competitive firms have a downward-sloping marginal revenue curve. O A monopolistically competitive firm can raise its price slightly without losing all its customers. (O Economic efficiency is maximized in a market of monopolistic competition. O In a market of monopolistic competition, each firm earns a normal economic profit in the long run. O Monopolistically competitive firms produce at a level where marginal revenue equals marginal cost. Question 6 1 pts Which one of the following is not a condition of oligopoly? O Entry into the market is difficult. (O Each firm must consider the behavior of its rivals. (O Each firm faces a perfectly elastic demand curve. O Sellers can influence the market price. (O The market is dominated by a few sellers. Question 7 1 pts The analysis of oligopolistic behavior is difficult because O oligopolists make decisions independently of each other. (O there are few real-world examples of oligopolies for economists to study. (O firms in oligopolistic industries react to each other's behavior in many ways. O oligopolistic firms are usually run by people as wild and unpredictable as Microsoft's Bill Gates. (O economists have paid little attention to the topic in recent years. Question 8 1 pts A payoff matrix may illustrate ... O how much a monopolistically competitive firm should pay for advertising. (O the choices facing firms in a duopoly. (O the costs of creating and maintaining barriers to entry. (O the profit levels attainable by a perfectly competitive firm. (O the payments made by a price leader to other firms. Which of the following is true for a firm in a typical cartel, a bunch of companies trying to collude to keep prices high by limiting output? O ltis easy to coordinate with the other cartel members to limit output and fix prices. O If everyone cheats and produces a lot, I'm better off and so is everyone in the cartel. O If I am the only one who cheats on the cartel agreement and produce a lot, I'm better off; if everyone cheats, I'm worse off. O If | suspect others are planning to cheat and produce a lot, I'll do best by deciding not to cheat. O | can never do better for myself than by following agreed-upon cartel policies. Question 10 1 pts Which one of the following is an example of non-price competition? (O Exclusionary practices O Advertising O Network Externalities O A patent