Home / Questions / Which of the following is an example of a monopolistic competitor? a.General Motors b.a

Which of the following is an example of a monopolistic competitor? a.General Motors b.a

Which of the following is an example of a monopolistic competitor?

a.General Motors

b.a wheat farmer in Iowa

c.a long-distance telephone company

d.a family-owned Italian restaurant

 

 

 

12.Which of the following statements is false?

a.The monopolistic competitor is a price searcher.

b.The monopolistic competitor produces a product that differs slightly from the products of the other firms in the industry.

c.The monopolistic competitor faces a horizontal demand curve.

d.The monopolistic competitor produces an output at which price is greater than marginal cost.

 

 

 

13.The demand curve facing a monopolistic competitive firm will be __________ than the demand curve facing a perfectly competitive firm, because the price elasticity of demand for the monopolistic competitive firm's product is __________ than that for the perfectly competitive firm.

a.steeper; greater

b.flatter; greater

c.steeper; less

d.flatter; less

 

 

 

14.One of the ways in which monopolistic competitors differ from perfect competitors is that

a.perfect competitors produce the quantity of output at which marginal revenue equals marginal cost and monopolistic competitors do not.

b.perfect competitors produce a homogeneous product and monopolistic competitors do not.

c.there is easy entry and exit for a perfect competitor, but not for a monopolistic competitor.

d.a and c

e.b and c

 

 

 

15.The demand curve facing a monopolistic competitor will be more elastic than the demand curve facing a monopolist because

a.there are barriers to exit for the monopolist, but not for the monopolistic competitor.

b.the monopolistic competitor attains resource-allocative efficiency, but the monopolist does not.

c.there are substitute goods for what the monopolistic competitor produces, but not for what the monopolist produces.

d.the monopolist is a price searcher, but the monopolistic competitor is not.

 

 

 

16.Which of the following statements is false?

a.The monopolistic competitor is a price searcher.

b.The monopolistic competitor produces an output at which price is greater than marginal cost.

c.The demand curve facing a monopolistic competitor is less elastic than the demand curve facing a monopolist.

d.There are many substitutes in a monopolistic competitive industry.

 

 

 

17.Does the monopolistic competitive firm exhibit resource-allocative efficiency?

a.No, because at its chosen quantity of output, price does not equal the lowest possible average total cost.

b.Yes, because at its chosen quantity of output, price equals marginal cost.

c.No, because at its chosen quantity of output, price is greater than marginal cost.

d.Yes, because at its chosen quantity of output, price is less than marginal cost.

 

 

 

18.The monopolistic competitive firm produces the output at which

a.price equals marginal cost.

b.marginal revenue equals marginal cost.

c.there is resource allocative efficiency.

d.average total cost is at a minimum.

 

 

 

19.The perfectly competitive firm charges a price equal to __________ while the monopolistic competitor firm charges a price __________.

a.marginal revenue; equal to marginal cost

b.marginal cost; greater than marginal cost

c.marginal revenue; greater than marginal revenue

d.average fixed cost; greater than average total cost

e.b and c

 

 

 

20.The relationship between a monopolistic competitor's marginal revenue curve and its demand curve is that the

a.two curves coincide and are horizontal at the market price.

b.marginal revenue curve lies above the demand curve and the demand curve is horizontal at the market price.

c.marginal revenue curve lies below the demand curve and both are downward sloping.

d.two curves coincide and are downward sloping to the right.

e.marginal revenue curve lies above the demand curve and both are downward sloping.

 

 

 

Dec 09 2019 Read more Less More

Answer (UnSolved)

question Get solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form