ECON 213 Quiz 11 Liberty University Solution
Question 1 Market power is best described as when the firm’s demand curve is:
Question 2 In a monopolistically competitive industry, price:
Question 3 Why would perfectly competitive industries advertise even though individual firms do not?
Question 4 Which of the following is a characteristic of a monopolistically competitive firm?
Question 5 Advertising is designed to:
Question 6 Both perfectly competitive and monopolistically competitive industries have many firms, in fact so many that, in the long run:
Question 7 Profitmaximizing, monopolistically competitive firms:
Question 8 Which of the following is the best description of monopolistic competition?
Question 9 The theory of monopolistic competition predicts that, in longrun equilibrium, a monopolistically competitive firm will:
Question 10 The correct level of output for a profitmaximizing, monopolistically competitive firm always matches the point where:
Question 11 Which of the following is the best example of a firm operating in a monopolistically competitive market?
Question 12 As new firms enter a monopolistically competitive industry, it can be expected that:
Question 13 If barriers to entry are high and products are somewhat differentiated:
Question 14 Refer to the following graph to answer the questions that follow.
In the long run, the demand curve for the monopolistically competitive firm would:
Question 15 The shape and/or slope of the marginal revenue curve under monopolistic competition is:
Question 16 A convenience store is generally able to charge and obtain a higher price for its candy bars than is WalMart because the convenience store:
Question 17 We can represent the entry of new firms into a monopolistically competitive market by shifting the existing firms’:
Question 18 An increase in marginal cost causes a profitmaximizing, monopolistically competitive firm to:
Question 19 Which of the following is evidence of market power?
Question 20 If all monopolistically competitive firms had identical cost curves: