Question 1

In the long run,monopolistically competitive firms produce where demand equals marginal cost.

Accepted Answer

A) True 
 B)False

Question 2

The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale.

Accepted Answer

A) True 
 B)False

Question 3

One key difference between an oligopoly market and a competitive market is that oligopolistic firms

Accepted Answer

A)  are price takers while competitive firms are not.
B)  can affect the profit of other firms in the market by the choices they make while firms in competitive markets do not affect each other by the choices they make.
C)  sell completely unrelated products while competitive firms do not.
D)  sell their product at a price equal to marginal cost while competitive firms do not.

Question 4

The market for wheat is most likely considered a monopolistically competitive market.

Accepted Answer

A) True 
 B)False

Question 5

Some firms have an incentive to advertise because they sell a

Accepted Answer

A)  homogeneous product and charge a price equal to marginal cost.
B)  homogeneous product and charge a price above marginal cost.
C)  differentiated product and charge a price equal to marginal cost.
D)  differentiated product and charge a price above marginal cost.

Question 6

Why does a typical monopolistically competitive firm face a downward-sloping demand curve?

Accepted Answer

Because its product ...

Exam 16: Monopolistic Competition

One key difference between an oligopoly market and a competitive market is that oligopolistic firms

Correct Answer
verified

The market for wheat is most likely considered a monopolistically competitive market.

Correct Answer
verified

The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale.

Correct Answer
verified

Why does a typical monopolistically competitive firm face a downward-sloping demand curve?

Correct Answer
verified
Because its product ...
View Answer

Some firms have an incentive to advertise because they sell a

Correct Answer
verified

In the long run,monopolistically competitive firms produce where demand equals marginal cost.

Correct Answer
verified

Exam 16: Monopolistic Competition

One key difference between an oligopoly market and a competitive market is that oligopolistic firms

Correct AnswerverifiedShow Answer

The market for wheat is most likely considered a monopolistically competitive market.

Correct AnswerverifiedShow Answer

The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale.

Correct AnswerverifiedShow Answer

Why does a typical monopolistically competitive firm face a downward-sloping demand curve?

Correct AnswerverifiedBecause its product ...View AnswerShow Answer

Some firms have an incentive to advertise because they sell a

Correct AnswerverifiedShow Answer

In the long run,monopolistically competitive firms produce where demand equals marginal cost.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Because its product ...
View Answer

Correct Answer
verified

Correct Answer
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