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Questions and Answers
What is a key characteristic of a firm in a monopolistic competitive market?
What is a key characteristic of a firm in a monopolistic competitive market?
- It has a lot of market power and can influence the market price.
- It is the only firm in the industry.
- It produces a homogeneous product.
- It is eager to sell more at the going market price. (correct)
What is the primary difference between a monopolistically competitive market and a perfectly competitive market?
What is the primary difference between a monopolistically competitive market and a perfectly competitive market?
- The level of barriers to entry.
- The level of government regulation.
- The level of product differentiation. (correct)
- The number of firms in the market.
What is an example of a non-price competition strategy in a monopolistically competitive market?
What is an example of a non-price competition strategy in a monopolistically competitive market?
- Merging with a competitor.
- Advertising. (correct)
- Increasing production capacity.
- Price cutting.
What is a characteristic of an oligopolistic market?
What is a characteristic of an oligopolistic market?
What is collusion in the context of oligopolistic markets?
What is collusion in the context of oligopolistic markets?
What is a cartel in the context of oligopolistic markets?
What is a cartel in the context of oligopolistic markets?
What is a market structure characterized by a single seller of a particular product?
What is a market structure characterized by a single seller of a particular product?
What type of monopoly occurs when one company controls manufacturing methods or has rights/patents to exclusively produce a product?
What type of monopoly occurs when one company controls manufacturing methods or has rights/patents to exclusively produce a product?
What is a market structure characterized by a few large firms competing with each other?
What is a market structure characterized by a few large firms competing with each other?
What is a business strategy in which firms try to differentiate their products from those of their competitors?
What is a business strategy in which firms try to differentiate their products from those of their competitors?
What is an agreement among firms to restrict competition and increase prices?
What is an agreement among firms to restrict competition and increase prices?
What is a law that regulates business practices and prohibits anti-competitive behavior?
What is a law that regulates business practices and prohibits anti-competitive behavior?
What is a characteristic of monopolistic competition?
What is a characteristic of monopolistic competition?
What is non-price competition often used for in monopolistic competition?
What is non-price competition often used for in monopolistic competition?
Which of the following is an example of an industry exhibiting monopolistic competition?
Which of the following is an example of an industry exhibiting monopolistic competition?
What is a key difference between oligopoly and monopolistic competition?
What is a key difference between oligopoly and monopolistic competition?
What is the outcome of firms in monopolistic competition in terms of profits?
What is the outcome of firms in monopolistic competition in terms of profits?
What is a common strategy used by firms in oligopoly to maintain their market share?
What is a common strategy used by firms in oligopoly to maintain their market share?
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