超星 - Ch 16 Monopolistic Competition

单选题

Which of the following conditions is characteristic of a monopolistically competitive firm in both the short run and the long run?a.b. c.d.

A. P > MC
B. MC = ATC
C. P < MR
D. P = ATC

单选题

In monopolistically competitive markets, free entry and exit suggests that

A. the market structure will eventually be characterized by perfect competition in the long run.
B. all firms earn zero economic profits in the long run.
C. some firms will be able to earn economic profits in the long run.
D. some firms will be forced to incur economic losses in the long run.

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单选题

In a long-run equilibrium,

A. only a perfectly competitive firm operates at its efficient scale.
B. only a monopolistically competitive firm operates at its efficient scale.
C. neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost.
D. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production.

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单选题

Monopolistic competition is considered inefficient because

A. price exceeds marginal cost.
B. output is excessive.
C. long-run profits are positive.
D. barriers to entry limit the number of firms in the market.

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单选题

The product-variety externality is associated with the

A. producer surplus that accrues to incumbent firms in a monopolistically competitive industry.
B. loss of consumer surplus from exposure to additional advertising.
C. consumer surplus that is generated from the introduction of a new product.
D. opportunity cost of firms exiting a monopolistically competitive industry.

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单选题

Defenders of advertising argue that in some markets advertising may

A. decrease elasticity of demand allowing firms to charge a larger markup over marginal cost.
B. impede competition.
C. signal quality to consumers, because advertising is expensive.
D. reduce the deadweight loss associated with monopolistic competition.

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单选题

If a firm in a monopolistically competitive market successfully uses advertising to decrease the elasticity of demand for its product, the firm will

A.be able to increase its markup over marginal cost.
B. eventually have to reduce price to remain competitive.
C. increase the welfare of society.
D. reduce its average total cost.

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单选题

Critics of markets that are characterized by firms that sell brand-name products argue that brand names encourage consumers to pay more for branded products that

A. have elastic demand curves.
B. are very different from generic products.
C. are indistinguishable from generic products.
D. consumer-advocate groups have found to be inferior.

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判断题

A profit-maximizing firm in a monopolistically competitive market can earn positive, negative, or zero profits in the short run.

A. 对
B. 错

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判断题

A monopolistically competitive firm faces a downward-sloping demand curve because there are few firms in the market.

A. 对
B. 错

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