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: