PCE CERTIFIED BREASTFEEDING COUNSELOR EXAM
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS|ALREADY GRADED A+
two types of market models that closely approximate many markets in the real
world are - ANSWER: monopolistic competition and oligopoly
a(n) _oligopoly_ is a market dominated by a few large producers of a homogeneous
or differentiated product - ANSWER: oligopoly
when plant and equipment are underutilized because firms are producing less than
the minimum- ATC output, this is known as having _productive inefficiency_ _excess
capacity_. - ANSWER: productive inefficiency
excess capacity
which of the following is a characteristic of monopolistic competition? - ANSWER:
differentiated products
if a monopolistically competitive firm is producing where its marginal revenue is less
than its marginal cost, then the firm - ANSWER: should produce less output to
increase profits or reduce losses
the equality or price and minimum average total cost yields technical _productive_
efficiency; the equality of price and marginal cost yields _allocative_ efficiency -
ANSWER: productive, allocative
monopolistic competition normally consist of 25 to 75 firms rather than hundreds or
thousands and involves which of the following characteristics? - ANSWER: no
collusion
small market shares
independent action
the demand curve for a monopolistically competitive firm is - ANSWER: downward-
sloping
firms in oligopolistic industries are " price makers" because - ANSWER: they are few
in number
entry of new firms into monopolistically competitive industries is relatively easy
because - ANSWER: capital requirements are low
, _monopolistic_ competition is a market characterized by having many sellers,
differentiated products, and with ease of entry and eat from an industry - ANSWER:
monopolistic
to achieve economic efficiency that reduces the number of resources used but
increases the number of socially optimal outputs requires a triple equality. the three
components that must be equal are which of the following? - ANSWER: marginal
cost, price, minimum average total cost
non-price competition is competition illustrated through product differentiation and
advertising. - ANSWER: price
oligopolies are comprised of - ANSWER: a few large producers
firms in monopolistic competition produce goods with: - ANSWER: varying degrees of
customer service
slightly varying physical characteristics
in the long run, if a monopolistically competitive firm is earning normal profits
(breaking even), then it should - ANSWER: not exit the industry because both explicit
and implicit costs are covered
firms often merge, forming oligopolies in order to - ANSWER: increase control over
price
become a larger buyer of inputs
gain greater control over market supply
the ability of monopolistically competitive firms to engage in _____ competition
makes the market situation more complex because of differentiated product
differences and advertising - ANSWER: nonprice
managers can identify excess capacity by measuring the gap between - ANSWER: the
minimum average total cost output and the profit-maximizing output
in the figure, why doesn't the monopolistically competitive firm achieve allocative
efficiency? - ANSWER: it does not achieve allocative efficiency because it produces
where price exceeds
in monopolistically competitive industries, small store with high prices can compete
with larger store by - ANSWER: having very convenient locations for customers
monopolistically competitive firms do not achieve allocative efficiency because __. -
ANSWER: price for a monopolistically competitive firm exceeds the marginal cost
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS|ALREADY GRADED A+
two types of market models that closely approximate many markets in the real
world are - ANSWER: monopolistic competition and oligopoly
a(n) _oligopoly_ is a market dominated by a few large producers of a homogeneous
or differentiated product - ANSWER: oligopoly
when plant and equipment are underutilized because firms are producing less than
the minimum- ATC output, this is known as having _productive inefficiency_ _excess
capacity_. - ANSWER: productive inefficiency
excess capacity
which of the following is a characteristic of monopolistic competition? - ANSWER:
differentiated products
if a monopolistically competitive firm is producing where its marginal revenue is less
than its marginal cost, then the firm - ANSWER: should produce less output to
increase profits or reduce losses
the equality or price and minimum average total cost yields technical _productive_
efficiency; the equality of price and marginal cost yields _allocative_ efficiency -
ANSWER: productive, allocative
monopolistic competition normally consist of 25 to 75 firms rather than hundreds or
thousands and involves which of the following characteristics? - ANSWER: no
collusion
small market shares
independent action
the demand curve for a monopolistically competitive firm is - ANSWER: downward-
sloping
firms in oligopolistic industries are " price makers" because - ANSWER: they are few
in number
entry of new firms into monopolistically competitive industries is relatively easy
because - ANSWER: capital requirements are low
, _monopolistic_ competition is a market characterized by having many sellers,
differentiated products, and with ease of entry and eat from an industry - ANSWER:
monopolistic
to achieve economic efficiency that reduces the number of resources used but
increases the number of socially optimal outputs requires a triple equality. the three
components that must be equal are which of the following? - ANSWER: marginal
cost, price, minimum average total cost
non-price competition is competition illustrated through product differentiation and
advertising. - ANSWER: price
oligopolies are comprised of - ANSWER: a few large producers
firms in monopolistic competition produce goods with: - ANSWER: varying degrees of
customer service
slightly varying physical characteristics
in the long run, if a monopolistically competitive firm is earning normal profits
(breaking even), then it should - ANSWER: not exit the industry because both explicit
and implicit costs are covered
firms often merge, forming oligopolies in order to - ANSWER: increase control over
price
become a larger buyer of inputs
gain greater control over market supply
the ability of monopolistically competitive firms to engage in _____ competition
makes the market situation more complex because of differentiated product
differences and advertising - ANSWER: nonprice
managers can identify excess capacity by measuring the gap between - ANSWER: the
minimum average total cost output and the profit-maximizing output
in the figure, why doesn't the monopolistically competitive firm achieve allocative
efficiency? - ANSWER: it does not achieve allocative efficiency because it produces
where price exceeds
in monopolistically competitive industries, small store with high prices can compete
with larger store by - ANSWER: having very convenient locations for customers
monopolistically competitive firms do not achieve allocative efficiency because __. -
ANSWER: price for a monopolistically competitive firm exceeds the marginal cost
