1
Econ 5313 -Well Revised Exam With
Accurately Answered Questions 2026
You are a manager in a perfectly competitive market. The price in your market is
$14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q 2. What will happen in the long
run if there is no change in the demand curve? - correct-answer -Some firms will
enter the market eventually.
The primary difference between monopolistic competition and perfect
competition is: - correct-answer -In perfect competition, firms are price takers. In
monopolistic competition, firms are price makers.
In the long run, monopolistically competitive firms: - correct-answer -have excess
capacity
In a competitive industry with identical firms, long-run equilibrium is characterized
by: - correct-answer -P=AC, P=MC, MR=MC
, 2
Which of the following industries is best characterized as monopolistically
competitive? - correct-answer -toothpaste
Which of the following is a correct representation of the profit maximization
condition for a monopoly? - correct-answer -MC=MR
Chris raises cows and produces cheese and milk because he enjoys: - correct-
answer -economies of scope
Firms have market power in: - correct-answer -monopolistically competitive
markets and monopolistic markets.
Which of the following is(are) basic feature(s) of a perfectly competitive industry?
- correct-answer -Buyers and sellers have perfect information. There are no
transaction costs. There is free entry and exit in the market.
What contributes to the existence of multiproduct firms? - correct-answer -
Economies of scope and cost complementarity
Econ 5313 -Well Revised Exam With
Accurately Answered Questions 2026
You are a manager in a perfectly competitive market. The price in your market is
$14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q 2. What will happen in the long
run if there is no change in the demand curve? - correct-answer -Some firms will
enter the market eventually.
The primary difference between monopolistic competition and perfect
competition is: - correct-answer -In perfect competition, firms are price takers. In
monopolistic competition, firms are price makers.
In the long run, monopolistically competitive firms: - correct-answer -have excess
capacity
In a competitive industry with identical firms, long-run equilibrium is characterized
by: - correct-answer -P=AC, P=MC, MR=MC
, 2
Which of the following industries is best characterized as monopolistically
competitive? - correct-answer -toothpaste
Which of the following is a correct representation of the profit maximization
condition for a monopoly? - correct-answer -MC=MR
Chris raises cows and produces cheese and milk because he enjoys: - correct-
answer -economies of scope
Firms have market power in: - correct-answer -monopolistically competitive
markets and monopolistic markets.
Which of the following is(are) basic feature(s) of a perfectly competitive industry?
- correct-answer -Buyers and sellers have perfect information. There are no
transaction costs. There is free entry and exit in the market.
What contributes to the existence of multiproduct firms? - correct-answer -
Economies of scope and cost complementarity
