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.
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.
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 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.
- In perfect competition, each firm ________. A: can influence the price that it charges B: produces as much as it can C: is a price taker D: faces a perfectly inelastic demand for its product
- Under the monopolistic competition, there are many competitors in the market. But each firm sells a slightly different product, which can form some market leaders. Each firm makes independent decisions about price and output.
- Select the statement that distinguishes monopolistic competition from perfect competition. A: No barriers to entry/exist in monopolistic competition. B: A firm in monopolistic competition can set its own price and output. C: A firm in monopolistic competition makes zero economic profit in the long run. D: Close substitutes are available in monopolistic competition.