1. Monopolistic competition is different from perfect competition in what key fa
ID: 1222425 • Letter: 1
Question
1. Monopolistic competition is different from perfect competition in what key factor?
A. Number of sellers
B. Number of buyers
C. Differentiated products
D. Equilibrium Price
2. What explains the downward slope of monopolistic competition’s demand curve?
A. The income effect
B. The price effect
C. The output effect
D. B and C
3. Monopolistic competition’s decision point is:
A. Where MR=MC
B. Where P = MC
C. Where MC= ATC
D. None of the above
4. Which of these can make a monopolistically competitive firm successful?
A. Noticeable differentiation
B. Solid advertising
C. Cost effective production
D. All the above
5. Oligopoly can be seen in the:
A. Home computer market
B. The National Football League
C. Fast Food Industry
D. None of the Above
6. Which of these would be a legal barrier to entry?
A. Economies of scale
B. Patents
C. Occupational Licensing
D. B and C
7. In the prisoner’s dilemma, the best decision for both is to:
A. Rat on each other
B. Not rat on each other
C. Rat on one
D. None of the above
8. Which of these is a Nash Equilibrium?
A. Considering that Walmart will always undercut their Price, Target adopts a price of 50 cents more than Walmart
B. Sony and Microsoft are both priced at $499 for their consoles. Sony thinks they can steal more sales by dropping their price to $450
C. GM decides to operate where their marginal cost = marginal revenue
D. Jack doesn’t do the dishes because he knows his roommate doesn’t care or wash his, though it drives Jack insane
Explanation / Answer
Answer :- 1.) C. Differentiated products
2.) D. B and C
3.) A. Where MR=MC
4.) D. All the above.
5.) B. The National Football League
6.) D. B and C
7.) B. Not rat on each other
8.) C. GM decides to operate where their marginal cost = marginal revenue
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