Which of the following would describe a market that is monopolistically competitive?

ANSWER CHOICES:

A)Few producers relying on brand loyalty and advertising

B)A single supplier with moderate market power and low barriers to entry

C)Several firms in competition that keeps profits normal

D)Many firms with little market power selling a differentiated product

E)A few businesses each with total market power and protected by high barriers to entry

A single firm is operating with only a few competitors, each of which has significant market power. Also, there are significant barriers to entry. Which of the following describes the market structure the firm is in?

ANSWER CHOICES:

A)Perfect competition

B)Monopolistic competition

C)Oligopoly

D)Monopoly

E)Insufficient data to determine

A firm is operating in the long run where marginal cost, marginal revenue, average total cost, and demand intersect at a single point. This market structure must be

ANSWER CHOICES:

A)perfect competition

B)monopolistic competition

C)oligopoly

D)monopoly

E)insufficient data to determine

Which of the following would accurately describe a monopoly?

ANSWER CHOICES:

A)Perfectly competitive single-producer market with high trade barriers

B)Allocatively and productively inefficient market with a few sellers

C)Single-buyer market with insurmountable barriers to trade

D)Market with single producer that has total market power

E)Productively efficient market where demand and marginal revenue diverge

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