1) Which of the following is NOT a characteristic of monopolistic competition?
A) Product differentiation
B) Barriers to entry into the market
D) A significant number of sellers
2) All of the following are characteristics of monopolistic competition EXCEPT
A) a few firms dominate the industry.
B) product differentiation.
C) many firms in the industry.
3) Which of the following company belongs to monopolistic competition?
A) Jet Blue
B) National Grid
4) Which of the producer belongs monopolistic competition?
5) Which of the following describes monopolistic competition?
A) Homogenous products
B) P = MR = MC
C) Advertising plays a key role
D) There is only one seller in the industry
6) A good example of a monopolistic competitive industry is
A) the federal highway system.
B) oil producing industry.
C) the rap music industry.
7) A good example of a monopolistic competitive industry is
A) the U.S. auto industry.
B) the public utility industry.
C) the computer game industry.
8) Entry into a monopolistically competitive industry
A) is relatively easy.
B) is very difficult.
C) can be easy or difficult, depending on the type of product.
D) is about the same as entering a monopoly industry.
9) In a monopolistically competitive market, a firm should advertise to the point at which
A) it is selling the most units it can possibly sell.
B) the extra revenue from an additional dollar spent on advertising just equals the marginal cost of producing one more unit of the good.
C) the additional revenue generated by one more dollar of advertising just equals the extra dollar cost of advertising.
D) it can raise price to the highest level possible.
10) A market situation in which a large number of firms produce similar but not identical products is
A) a collusive market structure.
B) competitive monopoly.
C) a homogeneous market.
D) monopolistic competition.
11) In the above figure, the profit-maximizing output and price for this monopolistically competitive firm are
A) 10,000 units at a price of $10 per unit.
B) 10,000 units at a price of $5 per unit.
C) 13,000 units at a price of $7 per unit.
D) 12,000 units at a price of $8 per unit.
12) In the above figure, total revenue for this profit-maximizing monopolistically competitive firm is
13) In the above figure, total cost for this profit-maximizing monopolistically competitive firm is
14) In the above figure, the profit-maximizing monopolistically competitive firm will
A) make a profit of $24,000.
B) make a profit of $30,000.
C) make a profit of $0.
D) incur a loss of $20,000.
15) The above figure shows the situations of a monopolistic competitor in the short run. To maximize profits, the firm should produce
A) 10,000 units.
B) 12,000 units.
C) 13,000 unit.
D) somewhere between 10,000 and 12,000 units