201-tutorial-11 - Econ 201 Tutorial #11 Date: Week of Apr....

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Econ 201 Tutorial #11 Date: Week of Apr. 5 – 11, 2010 Coverage: Chapter 11 Imperfect Competition Chapter 15 International Trade + General Questions from Students I. Multiple Choice Questions: 1. Firms in monopolistic competition can differentiate their products by a. creating a unique product design. b. paying their labourers more than the going market wage rate. c. lowering the price. d. having a sale every Monday morning. e. pricing according to the elasticity of demand. 2. Excess capacity in monopolistically competitive firms is caused by a. Rival firms entering the industry and reducing the demand for the products of the firms already in the industry. b. The fact that each firm attempts to maximize profits. c. Cost curves being higher than they are under perfect competition. d. The waste associated with many slightly differentiated products serving almost the same purpose. e. The fact that each firm faces a demand that is not perfect elastic. 3. Under monopolistic competition, long-run economic profits tend toward zero because of a. Economic inefficiency. b. Product differentiation. c. The downward-sloping demand curve facing each firm. d. The lack of barriers to entry. e. Excess capacity. 4. Which of the following statements is (are) false? a. About 10% of our imports come from Japan. b. About 80% of our exports go to the US. c. About 70% of our imports come from the US. d. We export mainly agricultural and fishing products. e.
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This note was uploaded on 04/19/2010 for the course ECON econ201 taught by Professor Ianirvine during the Spring '10 term at Concordia Canada.

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201-tutorial-11 - Econ 201 Tutorial #11 Date: Week of Apr....

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