Ch12 - CHAPTER 12 Monopolistic Competition and Oligopoly...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 12 Monopolistic Competition and Oligopoly MULTIPLE CHOICE Section 12.1 easy 1. For which of the following market structures is it assumed that there are barriers to entry? a. perfect competition b. monopolistic competition c. monopoly d. all of the above e. (b) and (c) only easy 2. Use the following two statements about monopolistic competition to answer this question. I. In the long run, the price of the good will equal the minimum of the average cost. II. In the short run, firms may earn a profit. easy 3. A market with few entry barriers and with many firms that sell differentiated products is easy 4. The most important factor in determining the long-run profit potential in monopolistic competition is easy 5. Which of the following is NOT regarded as a source of inefficiency in monopolistic competition? a. the fact that price exceeds marginal cost. b. excess capacity. c. product diversity. d. the fact that long-run average cost is not minimized. e. all of the above. easy 6. Monopolistically competitive firms have monopoly power because they 174
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
CHAPTER 12 TEST BANK MONOPOLISTIC COMPETITION AND OLIGOPOLY SIXTH EDITION easy 7. A monopolistically competitive firm in short run equilibrium: easy 8. A monopolistically competitive firm in long run equilibrium: easy 9. What happens to an incumbent firm's demand curve in monopolistic competition as new firms enter? a. It shifts right. b. It shifts left. c. It becomes horizontal. d. New entrants will not affect an incumbent firm's demand curve. easy 10. Which of the following is true of the output level produced by a firm in long run equilibrium in a monopolistically competitive industry? easy
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern