Question 1

1pts

Which of the following characteristics of perfect competition doesnotapply in monopolistic competition?

Group of answer choices

free entry and exit

homogeneous products

numerous participants

perfect information

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Question 2

1pts

Which of the following conditions distinguishes the monopolistic competitor from the monopolist?

Group of answer choices

profit-maximizing rule

downward slope of demand curve

entry of rivals

short-run economic profits

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Question 3

1pts

A perfectly competitive firm and a monopolistically competitive firm are similar in each of the following respectsexcept

Group of answer choices

each has many buyers and sellers.

firms sell homogeneous products in both markets.

in having perfect information.

for freedom of exit and entry.

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Question 4

1pts

The demand curve for a monopolistic competitor slopes downward because

Group of answer choices

demand drops to zero after a slight price increase.

there are close but not perfect substitutes for the product.

customers have no loyalty to the product.

the product is undifferentiated.

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Question 5

1pts

A monopolistically competitive firm

Group of answer choices

tries to differentiate its product from competitors' products.

faces a perfectly elastic demand curve for its product.

has more monopoly power in the long run than does a perfectly competitive firm.

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Question 6

1pts

The monopolistically competitive firm in short-run equilibrium

Group of answer choices

faces a downward-sloping demand curve.

has a marginal revenue curve which lies above its demand curve.

maximizes profit where P = ATC.

All of the above are correct.

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Question 7

1pts

Oligopolists

Group of answer choices

are price takers.

rarely advertise.

must take rivals' reactions into account.

offer homogeneous products.

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Question 8

1pts

Game theory applies to problems that arise in

Group of answer choices

perfect competition.

monopolies.

oligopolies.

pure competition.

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Question 9

1pts

The analysis of oligopolistic behavior is difficult because

Group of answer choices

there are few real-world examples of oligopolies for economists to study.

oligopolists make decisions independently of each other.

firms in oligopolistic industries react to each other's behavior in many ways.

economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.

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Question 10

1pts

A cartel is

Group of answer choices

a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves.

a government-approved organization for the exchange of technical information among firms.

a form of competition among oligopolists.

a regulated industry that is officially permitted to set the price of its product above long-run average total cost.