ECON 101: Chapter 14 QUESTION AND CORRECT ANSWER 2023//2024

ECON 101: Chapter 14 QUESTION AND CORRECT ANSWER 2023//2024 A 1) Which of the following is NOT a characteristic of the market structure for monopolistic competition? A) Firms are price takers. B) There are a large number of firms. C) Firms are free to enter and exit. D) Firms compete on product quality, price, and marketing. C 2) Brand names are an example of A) economies of scale. B) illegal barriers to entry. C) product differentiation. D) oligopoly. C 3) Monopolistic competition is a market structure in which A) natural or legal barriers prevent the entry of new firms. B) firms compete only on product price. C) a large number of firms compete. D) firms produce identical products. C 4) All of the following characteristics apply to monopolistic competition EXCEPT A) firms compete on product quality, price, and marketing. B) there are no barriers to enter or exit the industry. C) each firm produces the same identical product. D) a large number of firms compete. D 5) In monopolistic competition, each firm supplies a ________ part of the total market output and its actions ________ the actions of the other firms. A) small; directly affect B) large; directly affect C) large; do not directly affect D) small; do not directly affect A 6) A monopolistically competitive firm is like a monopoly firm insofar as A) both have MR curves that lie below their demand curves. B) neither is protected by high barriers to entry. C) both earn an economic profit in the long