《江西财经大学微观经济学试题库》chapter 14.docVIP

Microeconomics, 10e (Parkin) Chapter 14 Monopolistic Competition 1 What Is Monopolistic Competition? 1) In monopolistic competition A) firms face barriers to entry. B) a large number of firms compete. C) firms produce and sell an identical product. D) firms face perfectly elastic demand for their product. Answer: B Topic: Monopolistic Competition Skill: Recognition Question history: Modified 10th edition AACSB: Reflective Thinking 2) Monopolistic competition is defined as a type of market structure where A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can earn positive profit in the long run. Answer: A Topic: Monopolistic Competition Skill: Recognition Question history: Previous edition, Chapter 14 AACSB: Reflective Thinking 3) ACME, Inc. operates in a market structure in which there are many other firms that find it easy to enter or exit. ACME is operating in ________ market. A) definitely a perfectly competitive B) either a perfectly competitive or a monopolistically competitive C) definitely a monopolistically competitive D) neither a perfectly competitive nor a monopolistically competitive Answer: B Topic: Monopolistic Competition Skill: Recognition Question history: Previous edition, Chapter 14 AACSB: Reflective Thinking 4) Which of the following is a characteristic of monopolistic competition? A) many firms B) standardized product C) mutual interdependence D) barriers to entry Answer: A Topic: Monopolistic Competition Skill: Recognition Question history: Previous edition, Chapter 14 AACSB: Reflective Thinking 5) In a monopolistically competitive market there are A) many firms. B) one firm. C) a very small number of firms. D) two firms. Answer: A Topic: Monopolistic Competition Skill: Recognition Question history: Previous edition, Chapter 14 AACSB: Reflective Thinking 6) Monopolistic competition is a market structure in which A) a large number of firms compete. B) each f