QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure?…
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Question “QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure?…”
QUESTION 1
Which of the following is not a characteristic of the
monopolistic competition market structure?
Many sellers, each small in size relative to the overall | ||
Few sellers. | ||
Differentiated product. | ||
Easy, low-cost entry and exit. |
QUESTION 2
Which of the following is the best example of a
monopolistic competitor?
Wheat farmers. | ||
Restaurants. | ||
Air Canada. | ||
General Motors. |
QUESTION 3
In the long run, both monopolistic competition and perfect
competition result in:
a wide variety of brand-name choices for consumers. | ||
an efficient allocation of resources. | ||
zero economic profit for firms. | ||
excess capacity. |
QUESTION 4
In the long run, monopolistically competitive firms have:
excess capacity. | ||
positive profits. | ||
minimal average costs. | ||
homogeneous production. |
QUESTION 5
A monopolistically competitive firm will:
maximize profits by producing where MR = MC. | ||
not likely earn an economic profit in the long run. | ||
shut down in the short run if price is less than average | ||
all of the above. |
QUESTION 6
A monopolistic competitive firm is inefficient because the
firm:
earns positive economic profit in the long run. | ||
is producing at an output corresponding to the condition that | ||
is not maximizing its profit. | ||
produces an output where average total cost is not minimum. |
QUESTION 7
Monopolistic competitive firms in the long run earn:
positive economic profits. | ||
zero pure economic profits. | ||
negative economic profits. | ||
Positive, zero, or negative economic profits. |
QUESTION 8
Which of the following statements best describes firms
under monopolistic competition?
Profits will be positive in the long run. | ||
Price always equals average variable cost. | ||
In the long run, positive economic profit will be | ||
Marginal revenue equals minimum average total cost in the short |
Answer
There are fewer sellers
A monopolistic market structure does not have fewer sellers. A characteristic of an oligopolist market structure is the presence of fewer sellers.
Answer the question b restaurant
Restaurant is the best example a monopolistic rival
Answer Option C) zero economic profit for firms
Both perfect and monopolistic competition will eventually lead to zero economic profit for businesses.
Answer the option a) Excess reserve
Monopolist firms that are competitive produce more reserves over time.
Conclusion
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