Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Monopolistic Competition 17 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 17.1 Checkpoint 17.2 Checkpoint 17.3 Question Question 11 Question Question 44 Question Question 88 Question Question 22 Question Question 55 Question Question 99 Question Question 33 Question Question 66 Question Question 10 10 Question Question 77 © 2013 Pearson CHECKPOINT 17.1 Question A firm in monopolistic competition has a market share and influence the price of its good or service A B C D E large; can large; cannot small; can small; cannot large; might be able to © 2013 Pearson CHECKPOINT 17.1 Question The absence of barriers to entry means that in the long run a firm in monopolistic competition A makes an economic profit B either makes zero economic profit or incurs an economic loss C incurs an economic loss D makes either a positive or zero economic profit E makes zero economic profit © 2013 Pearson CHECKPOINT 17.1 Question If the four-firm concentration ratio in a market is 28 percent, then the market is best characterized as _ A B C D E monopoly monopolistic competition oligopoly perfect competition duopoly © 2013 Pearson CHECKPOINT 17.2 Question The figure shows Louie’s Lunches, a lunch counter in competition with many other restaurants Louie’s is in the and is making A short run; a positive economic profit B short run; zero economic profit C short run; an economic loss D long run; a positive economic profit E long run; zero economic profit © 2013 Pearson CHECKPOINT 17.2 Question In the long run, a firm in monopolistic competition A makes zero economic profit B produces the quantity at minimum average total cost C has a zero markup D might make either zero or positive economic profit E produces a quantity at which price equals average total cost © 2013 Pearson CHECKPOINT 17.2 Question In the long run, a firm in monopolistic competition excess capacity, and a firm in perfect competition excess capacity A has; has B has; does not have C does not have; has D does not have; does not have E might have; might have © 2013 Pearson CHECKPOINT 17.2 Question A firm in monopolistic competition maximizes profit by producing the quantity at which _ A B C D E excess capacity is zero price equals marginal cost its markup is largest marginal revenue equals marginal cost price equals average total cost © 2013 Pearson CHECKPOINT 17.3 Question A firm in monopolistic competition that introduces a new and differentiated product will temporarily have a demand for its product and is able to charge A B C D E less elastic, a lower price than before less elastic, the same price as before more elastic, a lower price than before more elastic, a higher price than before less elastic, a higher price than before © 2013 Pearson CHECKPOINT 17.3 Question For a firm in monopolistic competition, selling costs _ A increase costs and reduce the firm’s economic profit B always increase the demand for the firm’s good C can change the quantity produced and lower the firm’s average total cost D can lower the firm’s total cost E has no effect on the quantity sold © 2013 Pearson CHECKPOINT 17.3 Question 10 The efficiency of monopolistic competition _ A is as clear-cut as the efficiency of perfect competition B depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity C arises from the excess capacity of firms D is eliminated in the long run E is similar to that of monopoly © 2013 Pearson ... economic profit B either makes zero economic profit or incurs an economic loss C incurs an economic loss D makes either a positive or zero economic profit E makes zero economic profit © 2013... run; a positive economic profit B short run; zero economic profit C short run; an economic loss D long run; a positive economic profit E long run; zero economic profit © 2013 Pearson CHECKPOINT... Question 10 The efficiency of monopolistic competition _ A is as clear-cut as the efficiency of perfect competition B depends on whether the gain from extra product variety offsets the selling costs