1. The market for novels is
a.
perfectly competitive.
b.
a monopoly.
c.
monopolistically competitive.
d.
an oligopoly.
2. Monopolistic competition is a type of
a.
b.
c.
d.
3. A monopolistically competitive market has characteristics that are similar to
a.
a monopoly only.
b.
a competitive firm only.
c.
both a monopoly and a competitive firm.
d.
neither a monopoly nor a competitive firm.
4. Which of the following goods is most likely to be associated with monopolistic competition?
a.
Gasoline
b.
Milk
c.
Cookies
d.
Wheat
5. Which of the following is a characteristic of monopolistic competition?
a.
ownership of a key resource by a single firm
b.
free entry
c.
identical product
d.
patents
6. Which of the following is true about a monopolistically competitive firm?
a.
It can earn an economic profit in the short run, but not the long run.
b.
It can earn an economic profit in the short run and the long run
c.
It can earn an economic profit in the long run, but not the short run
d.
It cannot earn an economic profit in either the short or long run
7. Which of the following goods is most likely to be associated with monopolistic competition?
a.
Gasoline
b.
Milk
c.
Cookies
d.
Wheat