Which of the following characteristics is common to monopolistic competition and perfect competition?
A: Firms produce identical products.
B: Entry barriers into the industry are low.
C: Each firm faces a downward-sloping demand curve.
D: Firms take market prices as given.
A: Firms produce identical products.
B: Entry barriers into the industry are low.
C: Each firm faces a downward-sloping demand curve.
D: Firms take market prices as given.
举一反三
- In both perfect competition and monopolistic competition, each firm A: sells identical products. B: faces a downward-sloping demand curve its product. C: has no monopoly power. D: can enter or exit the market freely.
- Which one of the following statements is TRUE for BOTH perfect competition and monopolistic competition? A: Each type of firm faces a downward sloping demand curve. B: Each type of firm produces a homogeneous product. C: In the long run, firms in both industries make zero economic profit. D: Each type of firm competes on product quality and price.
- In perfect competition, ________. A: there are restrictions on entry into the market B: firms in the market have advantages over firms that plan to enter the market C: only firms know their competitors' prices D: there are many firms that sell identical products
- Which of the following correctly describes an oligopoly? A: A single firm has all of the market power. B: Several firms have market power and there is free entry and exit. C: Several firms have market power and there are barriers to entry. D: Several firms take the price as given and there is free entry and exit.
- Which is the market structure in which many manufacturers produce and sell products that are different yet substitutable? A: Perfect competition B: Perfect monopoly C: Monopolistic competition D: Oligopoly