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Micro+Practice+test+4 - Micro Practice Test 4 1 Economists...

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Micro Practice Test 4 1. Economists use the term imperfect competition to describe: A) all industries which produce standardized products. B) any industry in which there is no nonprice competition. C) a pure monopoly only. D) those markets which are not purely competitive. 2. In which of the following industry structures is the entry of new firms the most difficult? 3. An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of: 4. Which of the following statements applies to a purely competitive producer? 5. Under monopolistic competition entry to the industry is: A) completely free of barriers. B) more difficult than under pure competition but not nearly as difficult as under pure monopoly. C) more difficult than under pure monopoly. D) blocked. Page 1
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6. Monopolistic competition resembles pure competition because: 7. Which of the following is not a basic characteristic of monopolistic competition? 8. Which of the following is not characteristic of monopolistic competition? 9. A monopolistically competitive industry combines elements of both competition and monopoly . The monopoly element results from: A) the likelihood of collusion. B) high entry barriers. C) product differentiation. D) mutual interdependence in decision making. 10. A significant difference between a monopolistically competitive firm and a purely competitive firm is that the:
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