21.Which of the following is NOT a characteristic of monopolistic competition? A)product differentiation B)lack of barriers to entry and exit in the long run C)many competing producers D)tacit collusion 22.Which of the following describes a feature shared by monopolistic competition and perfect competition? A)few firms in the industry B)no barriers to entry or exit in the long run C)absolute market power D)standardized products 23.A common example of monopolistic competition is the market for: A)oranges. B)1-inch nails. C)automobiles. D)gas stations.
21.Which of the following is NOT a characteristic of
A)product differentiation
B)lack of barriers to entry and exit in the long run
C)many competing producers
D)tacit collusion
22.Which of the following describes a feature shared by monopolistic competition and perfect competition?
A)few firms in the industry
B)no barriers to entry or exit in the long run
C)absolute market power
D)standardized products
23.A common example of monopolistic competition is the market for:
A)oranges.
B)1-inch nails.
C)automobiles.
D)gas stations.
24.An industry with a large number of relatively small firms producing _____ in a market with easy entry and exit is a(n) _____.
A)similar products;
B)identical products; monopolistic competition
C)differentiated products; oligopoly
D)differentiated products; monopolistic competition
25.Monopolistic competition describes an industry characterized by a _____ number of firms producing _____ products with _____ entry.
A)small; identical; barriers to
B)small; similar; relatively easy
C)large; similar; relatively easy
D)large; identical; relatively easy
26.The market for dentists in most communities can be considered _____ because the market has a large number of similar but not identical dental services.
A)monopolistic competition
B)a monopoly
C)perfect competition
D)an oligopoly
27.Monopolistic competition describes an industry characterized by:
A)a product with many close substitutes.
B)a horizontal demand curve.
C)a small number of firms.
D)barriers to entry and exit.
28.Monopolistic competition is different from monopoly because firms:
A)have some power to set prices.
B)have a downward-sloping demand curve.
C)face some competition.
D)have a downward-sloping marginal revenue curve.
29.Because most communities have a large number of similar but not identical substitutes, the market for florists is best considered:
A)a monopoly.
B)an oligopoly.
C)monopolistically competitive.
D)
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