WVU Econ 201 exam 3 – Flashcards
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The marginal revenue curve of a perfectly competitive firm is horizontal. The marginal revenue curve of a monopoly firm is:
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B.) Downward sloping
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Which of the following is correct?
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D.) A purely competitive firm is a "price taker", while a monopolist is a "price maker"
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The monopolistically competitive seller's demand curve will become more elastic the
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A.) Larger the number of competitors
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In a monopolistically competitive market, the firm's marginal revenue curve is
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B.) Below its demand curve
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The socially optimal price (P=MC) is socially optimal because
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D.) It achieves allocative efficiency
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Which of the following best describes the efficiency of a monopolistically competitive firm?
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C.)Neither allocatively nor productively efficient
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Which of the following are two examples of products sold in monopolistically competitive markets?
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B.) Ralph Lauren cologne and Maybelline cosmetics
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Mutual interdependence means that each oligopolistic firm
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B.) Must consider the reactions of its rivals when determining its price policy
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Which of the following statements concerning monopolistic competition is false?
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A.) Firms may experience positive economic profits in the long-run
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The long-run equilibrium position of the monopolistically competitive firm occurs at a point where average costs are
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B.) Decreasing (graph on phone)
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When each firm chooses the best strategy, given the strategies chose by other firms, we are at the
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C.) Nash equilibrium
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A natural monopoly
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B.) Develops automatically due to economies of scale (comcast)
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A monopoly differs from monopolistic competition in that
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B.) In a monopoly there are significant barriers to entry but there are low barriers to entry in a monopolistically competitive market structure
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The tablet computer market is best characterized as a(n)
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C.) Oligopoly
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A cartel is
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B.) A formal agreement among firms to collude
