Micro-Economics Ch 16 Questions

Micro-Economics Ch - Name Date 1 Which of the following industries is most likely to be monopolistically competitive A automobiles B fresh bagel

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Page 1 Name: __________________________ Date: _____________ 1. Which of the following industries is most likely to be monopolistically competitive? A) automobiles B) fresh bagel shops C) corn D) an electric utility 2. A monopolistically competitive industry such as baked goods and a perfectly competitive industry like wheat farming are alike in that: A) firms in both types of industries produce identical products. B) firms in both types of industries produce similar but not identical products. C) barriers to entry in both industries are large. D) there are many firms in each industry. 3. In monopolistic competition: A) there is free entry and exit in the long run. B) each firm produces a standardized product. C) there are few producers. D) there are barriers to entry. 4. In monopolistic competition, each firm: A) is a price-taker. B) has some ability to set the price of its differentiated good. C) will set price equal to marginal cost. D) has marginal revenue that is greater than price. 5. If the toothpaste market is monopolistically competitive, product differentiation will take place in which of the following forms? A) different varieties of toothpaste—including whitening agents B) differentiation in the locations where certain toothpastes are available C) quality differences among the various brands D) all of these forms 6. The women's dress industry is monopolistically competitive. This means that the following condition applies to this industry: A) There are thousands of dress suppliers, all selling identical products. B) Dresses tend to be differentiated among the many sellers serving this market. C) There is freedom of entry but not exit in this industry.
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This note was uploaded on 12/02/2011 for the course ECONOMICS 202 taught by Professor Black during the Fall '08 term at Boise State.

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Micro-Economics Ch - Name Date 1 Which of the following industries is most likely to be monopolistically competitive A automobiles B fresh bagel

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