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economics mcq bank

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Question;1) Which of the following is NOT a characteristic of monopolistic competition?A) Product differentiationB) Barriers to entry into the marketC) AdvertisingD) A significant number of sellers2) All of the following are characteristics of monopolistic competition EXCEPTA) a few firms dominate the industry.B) product differentiation.C) many firms in the industry.D) advertising.3) Which of the following company belongs to monopolistic competition?A) Jet BlueB) National GridC) StarbucksD) Duracell4) Which of the producer belongs monopolistic competition?A) ToothpasteB) TabletsC) TabaccoD) Corn5) Which of the following describes monopolistic competition?A) Homogenous productsB) P = MR = MCC) Advertising plays a key roleD) There is only one seller in the industry6) A good example of a monopolistic competitive industry isA) the federal highway system.B) oil producing industry.C) the rap music industry.D) farming.7) A good example of a monopolistic competitive industry isA) the U.S. auto industry.B) the public utility industry.C) the computer game industry.D) mining.8) Entry into a monopolistically competitive industryA) is relatively easy.B) is very difficult.C) can be easy or difficult, depending on the type of product.D) is about the same as entering a monopoly industry.9) In a monopolistically competitive market, a firm should advertise to the point at whichA) it is selling the most units it can possibly sell.B) the extra revenue from an additional dollar spent on advertising just equals the marginal cost of producing one more unit of the good.C) the additional revenue generated by one more dollar of advertising just equals the extra dollar cost of advertising.D) it can raise price to the highest level possible.10) A market situation in which a large number of firms produce similar but not identical products isA) a collusive market structure.B) competitive monopoly.C) a homogeneous market.D) monopolistic competition.11) In the above figure, the profit-maximizing output and price for this monopolistically competitive firm areA) 10,000 units at a price of $10 per unit.B) 10,000 units at a price of $5 per unit.C) 13,000 units at a price of $7 per unit.D) 12,000 units at a price of $8 per unit.12) In the above figure, total revenue for this profit-maximizing monopolistically competitive firm isA) $50,000.B) $91,000.C) $96,000.D) $100,000.13) In the above figure, total cost for this profit-maximizing monopolistically competitive firm isA) $91,000.B) $50,000.C) $70,000.D) $72,000.14) In the above figure, the profit-maximizing monopolistically competitive firm willA) make a profit of $24,000.B) make a profit of $30,000.C) make a profit of $0.D) incur a loss of $20,000.15) The above figure shows the situations of a monopolistic competitor in the short run. To maximize profits, the firm should produceA) 10,000 units.B) 12,000 units.C) 13,000 unit.D) somewhere between 10,000 and 12,000 units

 

Paper#56962 | Written in 18-Jul-2015

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