Skip to content
Back to quiz
6. Monopolistically competitive firms have _________ - this is because their products are differentiated.
- Price taking power
- Some price making power
- Price making power
7. Firms in monopolistic competition are only going to make what profit in the long run?
- Normal profit
- Abnormal profit
8. Which of these is most similar to monopolistic competition?
- Taxi services
- Low cost airlines
- Agricultural products
- Local bus services
9. 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
10. Which of these is NOT a characteristic of monopolistic competition
- Firms are price takers
- Non-homogeneous products
- Low barriers to entry and exit
- Many small buyers and sellers with a small market share
- Good knowledge
11. In both short run and long run - in terms of allocative efficiency...
