Download 1. Question : All but which one of the following are true of

1. Question :
Student Answer:
All but which one of the following are true of monopolistic
competition?
MR = MC
P>MC
AR = MR
The demand curve the firm faces slopes downward.
Points Received:
Entry is easy.
1 of 1
Comments:
2. Question :
Student Answer:
At the point of long-run equilibrium for a perfectly competitive
firm,
economic profits are zero.
TR > TC.
TR < TC.
P = AVC.
Points Received:
normal profits are zero.
1 of 1
Comments:
3. Question :
Student Answer:
The greater the price elasticity of the demand curve that the firm
faces in monopolistic competition,
the higher the degree of competition in the industry.
the lower the degree of competition in the industry.
the fewer substitutes for the good produced.
the easier it is for the firm to raise its price.
Points Received:
the less sales the firm will gain from a price decrease.
1 of 1
Comments:
4. Question :
Student Answer:
Retail outlets operate in which of the following market structures?
perfect competition
monopolistic competition
oligopoly
monopoly
Points Received:
Comments:
oligopsony
1 of 1
5. Question :
Student Answer:
Which one of the following is NOT a basic assumption of the
model of perfect competition?
Many buyers
Many sellers
A differentiated product
Full information
Points Received:
Mobile resources
1 of 1
Comments:
6. Question :
Student Answer:
A firm in a(n) industry will have the most elastic demand curve.
monopolistic
oligopolistic
monopolistically competitive
Points Received:
perfectly competitive
1 of 1
Comments:
7. Question :
Student Answer:
The marginal cost curve above the minimum average variable cost
indicates points where the firm will realize an economic profit.
covers the area where a firm should shut down.
is equal to the firm's marginal revenue curve.
Points Received:
is the firm's short-run supply curve.
1 of 1
Comments:
8. Question :
Student Answer:
A firm in a monopolistically competitive industry faces a
downward-sloping demand curve because
the product is homogeneous.
the product is differentiated.
nonprice competition is missing.
Points Received:
barriers to entry are high.
1 of 1
Comments:
9. Question :
Student Answer:
Along a downward-sloping monopoly demand curve,
marginal revenue is greater than price.
elasticity of demand is constant.
marginal revenue decreases when price decreases.
Points Received:
marginal revenue is equal to zero when price is equal to zero.
1 of 1
Comments:
10. Question :
Student Answer:
Perfect competition is
not an abstraction from reality; it is reality.
an "ideal type"—that is, a model or guidepost for comparison.
the only market structure in the United States.
the best of all possible worlds.
Points Received:
found in the U.S. steel industry.
1 of 1