Please help as much as possible. Thank you. 1. In monopolistic competition a. fi

Question

Please help as much as possible. Thank you.

1. In monopolistic competition
a. firms can earn long-run economic profit due to product differentiation.
b. firms are unable to earn economic profit over the long run.
c. firms can only earn accounting profits over the long-run.
d. firms can block entry.

2. The goal of managers is to manage resources in such a way
a. to make them worth as much as they would be in their next best use.
b. to make them worth more than they would be in any other use.
c. to cover the cost of capital.
d. to cover all opportunity costs.

3. For a competitive firm
a. price is equal to marginal revenue.
b. price is less than marginal revenue.
c. demand is less than marginal revenue.
d. demand is less than average revenue but equal to marginal revenue.

4. A market that mainly stresses product differentiation is called
a. perfectly competitive.
b. monopolistically competitive.
c. a monopoly.
d. an oligopoly.

5. Technology has allowing pricing to become
a. automatic.
b. personalized.
c. standardized to minimize costs.
d. regularized.

6. If a firm can segment its market, and the parts cannot communicate among themselves, then
a. arbitrage can occur.
b. prices in the segments will tend to be equal over time.
c. arbitrage cannot occur.
d. the different elasticities will be equal over time.

7. When the pricing of one product produced by a firm adversely affects the revenue earned by another product of the same firm, the second product has been
a. cannibalized.
b. tied.
c. bundled.
d. sacrificed.

8. Entrepreneurs
a. and managers are found on the same organizational level.
b. are usually found in small firms.
c. are usually found in larger firms in order to access financial capital.
d. are found in firms of all sizes.

9. The information content of a product can never be separated from the physical aspect of the product.
a. True
b. False

10. The value of a network
a. is related to how many are in the network.
b. is not related to how many are in the network.
c. is related to its impact on diminishing marginal returns.
d. none of these choices

Explanation / Answer

Q1

Ans

b. firms are unable to earn economic profit over the long run.

2,

d to cover all opportunity costs

3. For a competitive firm
a. price is equal to marginal revenue.

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