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Tests, Surveys, and Pools Tests
Test Canvas : Self-Test Quiz - Chapter 15
Microeconom ics, 3e
Test Canvas: Self-Test Quiz - Chapter 15
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1. Multiple Choice: The market for oil-change can be desc...
Question The market for oil-change can be described as a market in which monopolistic
competition prevails. This means that collusion among garages that change oil is
____________ and firms engage in _________ behavior.
Answer
common; cooperative
2. Multiple Choice: Which of the following would be an ex...
Question Which of the following would be an example of a monopolistically competitive
industry with differentiation by style or type?
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Points: 1
Points: 1
3. Multiple Choice: Since a monopolistic competitor produ...
Question Since a monopolistic competitor produces a product with many close substitutes,
but none exactly like it. As a result, the firm:
Answer
has no market power.
4. Multiple Choice: For any given firm in a monopolistica...
Question For any given firm in a monopolistically competitive market, the long-run economic
profit tends to be __________ and firms operate to the ____________ of the
minimum point on the average total cost curve.
Correct
Points: 1
Points: 1
5. Multiple Choice: Monopolistically competitive firms ca...
Question Monopolistically competitive firms can earning positive economic profits in the short
run, but in the long run:
6. Multiple Choice: A monopolistically competitive firm f...
Question A monopolistically competitive firm faces:
Answer
a perfectly elastic demand curve.
7. Multiple Choice: In long-run equilibrium, a monopolist...
Question
Points: 1
Points: 1
Points: 1
In long-run equilibrium, a monopolistically competitive firm is producing at a point
on its average total cost curve where:
Answer
price equals marginal cost.
8. Multiple Choice: Why don't monopolistic competitors co...
Question Why don't monopolistic competitors collude to form a monopoly?
Answer
Each firm can charge a monopoly price acting on its own.
9. Multiple Choice: Monopolistic competitors engage in pr...
Question Monopolistic competitors engage in product differentiation to:
Points: 1
Points: 1
10. Multiple Choice: The goal of a monopolistically compet...
Question The goal of a monopolistically competitive firm is to:
11. Multiple Choice: The product diversity resulting from ...
Question The product diversity resulting from monopolistic competition comes at the
expense of having:
12. Multiple Choice: Suppose that a monopolistically compe...
Question
Points: 1
Points: 1
Points: 1
Suppose that a monopolistically competitive firm is currently producing at the point
where marginal revenue equals marginal cost and is not covering the variable cost
of producing the last unit. In this situation, economic theory would predict that the
firm will:
13. Multiple Choice: What accounts for the fact that profi...
Question What accounts for the fact that profit is zero in the long-run equilibrium in
monopolistic competition?
14. Multiple Choice: Which of the following describes accu...
Question Which of the following describes accurately the long run in perfect competition but
is not true of the long run in monopolistic competition?
Points: 1
Points: 1
15. Multiple Choice: Monopolistically competitive firms sp...
Question Monopolistically competitive firms spend money on celebrity endorsements to:
16. Multiple Choice: What is the effect in the market as m...
Question What is the effect in the market as more firms enter a monopolistically competitive
industry?
17. Multiple Choice: Which of the following is true of mon...
Points: 1
Points: 1
Points: 1
Question Which of the following is true of monopoly but is not true of monopolistic
competition?
18. Multiple Choice: Which of the following is true of per...
Question Which of the following is true of perfect competition but is not true of monopolistic
competition?
19. Multiple Choice: Which of the following is true of mon...
Question Which of the following is true of monopolistic competition but is not true of perfect
competition?
Points: 1
Points: 1
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20. Multiple Choice: To the extent that brand names develo...
Question To the extent that brand names developed in monopolistic competition provide a
benefit to the consumer, it is:
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Points: 1
