If a monopolistic competitive

If a monopolistic competitive firm raises its price,then a.it should expect to lose all of its customers because thereare many other sellers of the product b.this is a trick questionbecause the firm does not have the ability to change its price c.itshould expect to lose some but not all of its customers d.it willbe able to increase its profits e.it can sell all it wants becauseit faces a horizontal demand curve

Compared to a monopolistic competitor a monopolistproduces a good with ____ substitutes and so has a ____ elasticdemand curve. A.fewer, more b.fewer, less c.more, more d.more,less

The demand curve facing a monopolistic competitive firmwill be ____ than the demand curve facing a perfectly competitivefirm because the price elasticity of demand for the monopolisticcompetitive firm’s product is ____ than that for the perfectlycompetitive firm. A.steeper, greater b.flatter, greater c.steeper,less d.flatter, less

The relationship between a monopolistic competitor’smarginal revenue curve and its demand curve is that the a.twocurves coincide and are horizontal at the market price b.marginalrevenue curve lies above the demand curve and the demand curve ishorizontal at the market price c.marginal revenue curve lies belowthe demand curve and both are downward sloping d.two curvescoincide and are downward sloping to the right e.marginal revenuecurve lies above the demand curve and both are downwardsloping

Why cant an economist say for certain that amonopolistic competitive firm will always earn zero economicprofits in the long run? A.barriers to entry-exit b.the very largenumber of buyers indicates that there will always be demand for thefirm’s product c.the firms in the industry do not produce identicalproducts d.the firms practice price competition so at least someforms will always be charging a lower price than other firms andwill sell more as a result e.the firms face a horizontal demandcurve

If a perfectly competitive firm and a monopolisticcompetitor in long-run equilibrium face the same demand and costcurves, then the competitive firm will produce a a.greater outputand charge a lower price than the monopolistic competitor.B.greater output but change the same price as the monopolisticcompetitor. C.greater output and charge a higher price than themonopolistic competitor. D.smaller output and charger a higherprice than the monopolistic competitor. E.smaller output and chargea higher price than the monopolistic competitor.

Probably the most significant barrier to entry into anoligopolistic market is a.patent rights b.exclusive ownership ofessential resources c.legal barriers d.economies of scalee.copyrights

A concentration ratio indicates the a.numberof firms inan industry b.number of large firms in an industry compared to thenumber of large firms in another related industry c.percentage oftotal sales accounted for by the (for example) four largest firmsd.percentage of sellers in an industry relative to the number ofbuyers e.percentage of sellers in an industry protected by barriersto entry relative to the number of sellers that wish toenter

The percentage of sales accounted for by X number offirms in the industry is called the a.concentration ratiob.oligopoly rate c.interdependence rate d.market powerindex

The concentration ratio provides a measure of the extentto which an industry a.produces a useful product b.is dominated bya smaller number of firms c.is earning economic profit d.is earningaccounting profits

In the real-world which of these industries is mostclearly an oligopoly? A.wheat b.electricity generation c.cerealbreakfast foods d.restaurants