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Exam 10: Monopolistic Competition and Oligopoly

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Question 21

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Product differentiation may occur in _______ because _______ created strong preferences for certain brands.

A) shaping intangible preferences; predatory pricing
B) the minds of buyers; past habits and advertising
C) imperfect competition; the concept of differentiated products
D) imperfect competition; advertising and consumer habits

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Question 22

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A _______ refers to a group of firms colluding with one another to produce at the monopoly output and sell at the monopoly price.

A) prisoner's dilemma
B) cartel
C) game theory
D) duopoly

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Question 23

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When P > MC in a monopolistically competitive market, that industry will most likely produce _______ than would be found in a perfectly competitive industry. Benefits to society of providing additional quantity as measured by the price that people are willing to pay exceeds the marginal costs to society of producing those units.

The long-term result of entry and exit in a perfectly competitive market is that all firms end up selling at the price level determined by the lowest point on the

In the framework of monopolistic competition, the way advertising works can be perceived as

If a perfectly competitive market involves many firms selling identical products, then, in the face of such competition,

If a monopoly or a monopolistic competitor raises their prices, then

If the firm is producing at a quantity of output where marginal revenue exceeds marginal cost, then,

A monopolistic competitor has the following information about cost and demand. If this industry was perfectly competitive, what price would the good sell for?

The desire of businesses to _______, so that they can raise the prices that they charge and earn higher profits, has been well-understood by economists for a long time.

The perceived demand curve for a group of competing oligopoly firms will appear kinked as a result of their commitment to

The shape of the perceived demand curve for a perfectly competitive firm reflects that firm's ability to

The branch of mathematics that analyzes situations in which players must make decisions and then receive payoffs most often used by economists is

A monopolistically competitive industry does not display _______ in either the short-run, when firms are making _______, nor in the long-run, when firms are earning _______.

If a perfectly competitive firm raises its price, the quantity demanded of its product _______.

Monopolistic competitors in the food industry will often include a recyclable symbol on packaging used for their product as a means to

Would raising the price for a product create a larger decline in quantity demanded for a monopolistic competitor's than it would for a monopoly?

Perfect competition and monopoly stand at _______ of the spectrum of competition.

A monopolistic competitor has the following information about cost and demand. What will the firm's profits equal in the short run?

Why are the underlying economic meanings of the perceived demand curves for a monopolist and monopolistic competitor different?