Question 1

The definition of monopolistic competition differs from that of perfect competition with respect to ______________.

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Question 2

The monopolistic competitor is ___________ efficient than the perfect competitor.

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Question 3

If new firms enter a monopolistically competitive industry,an individual firm's demand curve will _____________ (increase / decrease).

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Question 4

Product differentiation takes place in the _____________.

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Question 5

In the short run,the profitability of monopolistic competition _______ that of perfect competition;in the long run the profitability of monopolistic competition _______ that of perfect competition.

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Question 6

Peak efficiency _________ achieved under monopolistic competition.

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Question 7

______% of all American business firms are monopolistic competitors.

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Question 8

Product differences are ___________ physical.

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Question 9

The monopolistic competitor's demand curve is more _______ (elastic / inelastic)than a monopolist's demand curve.

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Question 10

The basic attribute of monopolistic competition that is a strong counterforce to the "McDonaldization of America" is _____________________.

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Question 11

In the long run,price is equal to _________________ cost for the monopolistic competitor.

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Question 12

The firm that practices price discrimination needs to be able to distinguish _________;the seller also has to be able to prevent the buyers in the lower-priced market from ________ the product to those in the higher-priced market.

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Question 13

An industry that has many firms producing differentiated products is classified as _____________.

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Question 14

The monopolistic competitor gets people to buy their product by providing better (1)_____, (2)_____,and (3)_____.

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Question 15

Economic profits are competed away in the long run for a monopolistic competitor because of the absence of significant ______________________.

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Question 16

Monopolistic competition leads to ___________ prices,but ___________ product variety.

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Question 17

Draw a graph of the monopolistic competitor making a profit in the graph provided below.

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Question 18

Perfect price discrimination would eliminate consumer ________________.

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Question 19

If monopolistic competitors are taking losses,in the long run firms ________ and market price will _______.

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Question 20

If monopolistic competitors are making a profit in the short run,in the long run _____________ and squeeze out profits.

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Quiz 23: Monopolistic Competition