Other questions in this quiz

2. Given the product differentiation, it should be clear that firms in monopolistic competition compete through ?

  • Non-price competition
  • Price competition

3. Which of these is NOT a characteristic of monopolistic competition

  • Firms are price takers
  • Many small buyers and sellers with a small market share
  • Non-homogeneous products
  • Low barriers to entry and exit
  • Good knowledge

4. In monopolistic competition, the demand curve is ?

  • Relatively inelastic
  • Perfectly elastic
  • Relatively elastic
  • Perfectly inelastic

5. Allocative efficiency is being achieved

  • False
  • True



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