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1. Advertising and product differentiation are the most C: Monopolistic competi-
likely to be used in which of the tion
following market structures?
A: Monopoly
B: Perfect competition
C: Monopolistic competition
2. Which of the following market structures is most likely B: Perfect competition
to be characterized by the sale
of homogeneous products?
A: Monopoly
B: Perfect competition
C: Monopolistic competition
3. Consider two industries with the following characteris- C: Industry A is a oligopoly
tics: and Industry B is monop-
Industry Firm's Pricing Power Concentration Ratio olistically competitive
Number of Sellers
A Considerable High Few
B Some Low Many
Based on the information provided above, it is most
likely that:
A: Industry A is a monopoly and Industry B is monop-
olistically competitive
B: Industry A is monopolistically competitive Industry
B is an oligopoly
C: Industry A is a oligopoly and Industry B is monopo-
listically competitive
4. The marginal value curve of a consumer good is most C: downward-sloping
likely:
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, Microecon VEE - Assignment 3+4 Test With 100% Verified Solutions |
Late Update
A: flat
B: upward-sloping
C: downward-sloping
5. In a perfectly competitive environment, a company's B: marginal cost curve
supply curve is most likely equal to its:
A: average cost curve
B: marginal cost curve
C: marginal revenue curve
6. In a perfectly competitive market, The current price is A: 0kg
$0.50 per kilogram. If a
producer sells 10,000 kilograms at this price, the
amount that the producer could have sold for $0.55
per kilogram is closest to:
A: 0kg
B: 9,000kg
C: 9,090kg
7. At the equilibrium price, the demand curve faced by B: horizontal
firms in a perfectly competitive market is most likely:
A: kinked
B: horizontal
C: downward sloping
8. In a perfectly competitive market where firms are op- C: to the right because new
erating with positive economic profit, the industry sup- firms will enter the market
ply curve will most likely shift: and existing firms will ex-
A: to the right because prices will increase pand capacity
B: to the left because new firms will enter the market
C: to the right because new firms will enter the market
and existing firms will expand capacity
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