Quiz 12 of ECON251 Purdue University In Tutorial Library

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TITLE: Quiz 12 of ECON251 Purdue University

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: Economics

QUESTION DESCRIPTION:

 
Quiz 12:
 
1. (Points: 1.0)
For a monopolistically competitive firm:
a. a. marginal revenue and price are identical to each other.
b. b. marginal revenue is greater than price.
c. c. marginal revenue is less than price.
d. d. marginal revenue and price are unrelated.
2. (Points: 1.0)
The key characteristics of a monopolistically competitive market structure include:
a. a. many, small, independently acting sellers.
b. b. all sellers sell a differentiated product.
c. c. no barriers to entry of new rivals.
d. d. all of these.
3. (Points: 1.0)
To maximize profits, a monopolistically competitive firm would produce the output
where:
a. a. price equals average total cost.
b. b. marginal revenue equals marginal cost.
c. c. price equals marginal cost.
d. d. marginal revenue equals price.
4. (Points: 1.0)
A major difference between monopolistically competitive and perfectly competitive
markets is:
a. a. the number of sellers.
b. b. the degree by which market demand slopes downward.
c. c. products are not standardized in monopolistic competition.
d. d. barriers to entry.
5. (Points: 1.0)
Which of the following firms would NOT be part of a monopolistically competitive
market?
a. a. Automobile producers
b. b. Supermarkets
c. c. Video stores
d. d. Makers of women's clothing
6. (Points: 1.0)
A monopolistically competitive industry that earns economic profits in the short run
will:
a. a. continue to earn economic profits in the long run.
b. b. experience the entry of new rival firms into the industry in the
long run.
c. c. experience the exit of old firms out of the industry in the long run.
d. d. experience a rise in demand in the long run.
7. (Points: 1.0)
If a monopolistically competitive firm cuts its price from $10 where it sold 25 units to
$9 and sells five more units of output, its marginal revenue per unit of output is:
a. a. $270.
b. b. $2.50
c. c. $20.
d. d. $4.
8. (Points: 1.0)
A monopolistically competitive firm will:
a. a. charge the same price as its competitors do.
b. b. always produce at the minimum efficient scale of production.
c. c. have some control over its price because its product is
differentiated.
d. d. produce at the productive and allocative levels.
9. (Points: 1.0)
What type of demand does a monopolistically competitive firm face?
a. a. Horizontal
b. b. Vertical
c. c. Downward sloping
d. d. Upward sloping
10. (Points: 1.0)
A monopolistically competitive firm that is earning profits will, in the long run,
experience:
a. a. new rivals entering the market.
b. b. demand decreases.
c. c. demand for the firm's product becomes more elastic.
d. d. all of these.

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SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics

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