Question

QUESTION 1 Which of the following characterizes monopolistic competition? Many firms, each producing a particular version of a product O Many firms selling an identical product O A few firms, each producing a particular version of a product O A few firms controlling the entire market QUESTION 2 The demand curve faced by a monopolistically competitive firm is O flat kinked. O upward-sloping O downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of O a monopoly firm. a perfectly competitive firm O an oligopoly firm O a duopoly firm QUESTION 4 Aside from advertising, how can monopolistically competitive fims increase demand for their products? O government edict O increasing its price O decreasing its price O Increasing the number of locations where it is sold QUESTION 6 Advertising may resut in reducing average costs d O sales increase enough to offset the ise in total costs O sales inCrease by any amound O advertising results in cheaper production O costs only increase at higher levels of oulpu QUESTION 6 In the short un, a monopolstically competive fm O makes prolts pnt as does in the long nun beecause of baers to entry O will eam zero economac because of free entry and ext O produces where MR MC O produces where PMC

Answer 1

1. Many firms each producing a particular version of a product.

2. downward sloping

3. a monopoly firm

4. Increasing the number of locations where it is sold.

5. Sales increase enough to offset the rise in total costs

6. Produces where MR=MC