The demand curve for a monopolistic competitive firm will be: Select one: a. Fla

ID: 1166547 • Letter: T

Question

The demand curve for a monopolistic competitive firm will be:

Select one:

a. Flatter than the demand curve for a perfectly competitive firm

b. Steeper than the demand curve for a monopoly

c. Flatter than the demand curve for a monopoly

d. The same slope as the demand curve for a perfectly competitive firm

Which of the following is NOT one of the characteristics of perfect competition?

Select one:

a. many firms

b. free entry and exit of firms

c. similar but not identical products

d. firms are price takers

When a monopoly threatens or acts to drastically lower its price in order to discourage competition, this is an example of:

Select one:

a. monopoly pricing

b. natural monopoly

c. predatory pricing

d. legal monopoly

When firms are engaging in oligopolistic competition:

Select one:

a. Each pays attention only to its own demand curve

b. Each tries to produce the same output as it would under perfect competition

c. Each pays attention to its consumers as well as its rivals

d. The market outcome is less efficient than it would be under strict monopoly

a) "C"

It will be flatter than the demand curve of a monopoly because there are more number of firms in the market.

b) "C"

In a perfect market condition, all the goods are homogenous.

c) "C"

it is an example of predatory pricing.

d) "C"

Each pays attention to its consumer as well as its rival.

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