ch16 - ch16 Multiple Choice Identify the choice that best...

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ch16 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following statements is not correct? a. Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs. b. Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry. c. Monopolistic competition is similar to oligopoly because both market structures are char- acterized by barriers to entry. d. Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers. ____ 2. Which of the following statements is not correct? a. Monopolistic competition is different from monopoly because monopolistic competition is characterized by free entry, whereas monopoly is characterized by barriers to entry. b. Both monopolistic competition and oligopoly fall in between the more extreme market structures of competition and monopoly. c. Monopolistic competition is different from oligopoly because each seller in monopolistic competition is small relative to the market, whereas each seller can affect the actions of other sellers in an oligopoly. d.
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This note was uploaded on 03/15/2011 for the course ECON 101 taught by Professor Drwang during the Spring '11 term at National Taiwan University.

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ch16 - ch16 Multiple Choice Identify the choice that best...

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