Which of the following industries would fit best into the category of perfect competition?

A. The Agricultural Industry

B. The Computer Industry

C. The Pharmaceutical Industry

D. The Clothing Industry

Which of the following industries would fit best into the category of oligopoly?

A. The Agricultural Industry

B. The Cellphone Industry

C. The Pharmaceutical Industry

D. The Clothing Industry

Which of the followings is not a characteristics of monopolistic competition?

A. differentiate product

B. identical product

C. many buyers and sellers

D. downward sloping demand curve

In a monopolistically competitive market, marginal demand curve is _______ a firm's demand curve.

A. below

B. above

C. identical to

D. perpendicular to

An individual firm in a monopolistically competitive market is able to maximize the total profit where _________________

A. MC=MR

B. MC>MR

C. MC

D. None of the above

In the long run, an individual firm will _____________.

A. suffer losses

B. make positive economic profits

C. make a zero profit

D. None of the above

When average cost is above the demand curve of an individual firm, a firm is ________.

A. suffer losses

B. make positive economic profits

C. make a zero profit

D. None of the above

When existing firms are making profits, other firms will _____ the market.

A. leave

B. enter

C. cooperate in

D. None of the above

___________ is an impediment that makes it costly for consumers to switch to buying from another business.

A. switching cost

B. marginal cost

C. sunk cost

D. None of the above

Market power leads to _____ prices.

A. lower

B. higher

C. decreasing

D. None of the above