1. Non-price competition is competition between firms on the basis, of, for example, branding, customer service, location, range of products, advertising are indicative of how firms seek to gain market share.
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2. Monopolistically competitive firms have _________ - this is because their products are differentiated.
- Price taking power
- Some price making power
- Price making power
3. Firms in monopolistic competition are only going to make what profit in the long run?
- Normal profit
- Abnormal profit
4. Allocative efficiency is being achieved
5. In monopolistic competition, is being productive efficiency achieved?
- Productive efficiency is not being achieved, since in the short run and long run, the firm is operating on the downward-sloping part of the AC curve
- Productive efficiency is being achieved, since in the short run and long run, the firm is operating at the lowest point of the AC curve
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