exam4sample ques - Exam Four - Sample Questions Chapters...

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Exam Four - Sample Questions Chapters 12-14 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is the difference between perfect competition and monopolistic competition? A) Perfect competition has a large number of small firms while monopolistic competition does not. B) In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods. C) Perfect competition has no barriers to entry, while monopolistic competition does. D) Perfect competition has barriers to entry while monopolistic competition does not. 2) The market type known as perfect competition is A) almost free from competition and firms earn large profits. B) highly competitive and firms find it impossible to earn an economic profit in the long run. C) dominated by fierce advertising campaigns. D) marked by firms continuously trying to change their products so that consumers prefer their product to their competitors' products. 3) Which of the following market types has all firms selling products so identical that buyers do not care from which firm they buy? A) perfect competition B) oligopoly C) monopolistic competition D) monopoly 4) Perfect competition is characterized by all of the following EXCEPT A) well-informed buyers and sellers with respect to prices. B) a large number of buyers and sellers. C) no restrictions on entry into or exit from the industry. D) considerable advertising by individual firms. 5) Which of the following is the best example of a perfectly competitive market? A) diamonds B) athletic shoes C) soft drinks D) farming 6) Which of the following market types has the fewest number of firms? A) perfect competition B) monopoly C) monopolistic competition D) oligopoly 7) Which of the following market types has a large number of firms that sell similar but slightly different products? A) perfect competition B) oligopoly C) monopolistic competition D) monopoly 8) Which of the following market types has only a few competing firms? A) perfect competition B) monopolistic competition C) monopoly D) oligopoly 1
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9) In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision? A) what price to charge buyers for the product B) whether or not to enter or exit an industry C) the profit-maximizing level of output D) how much to spend on advertising and sales promotion 10) In perfect competition, a firm maximizes profit in the short run by deciding A) how much output to produce. B) whether or not to enter a market. C) what price to charge.
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exam4sample ques - Exam Four - Sample Questions Chapters...

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