5 Questions
In monopolistic competition, what characterizes each firm's product?
Each firm's product is at least somewhat different from every other firm's product
What characterizes an oligopolistic industry?
It is composed of a few large firms selling similar products in the same market
What happens to economic profits in long-run equilibrium under monopolistic competition?
Free entry eliminates economic profits by forcing the firm's demand curve into a position of tangency with its average cost curve
How do firms in an oligopoly often behave towards their rivals' decisions?
Carefully watch the major decisions of its rivals and often plans counterstrategies
What are the different models of oligopoly behavior mentioned in the text?
Ignore interdependence and maximize profits, form a cartel, and engage in price leadership
Test your knowledge of monopolistic competition with this quiz. Explore the key characteristics and dynamics of this market structure, including product differentiation, demand curves, entry and exit freedom, and information transparency. Ideal for students and professionals studying economics and business.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
