Reference no: EM1315743

1. Video rental stores in cities are an illustration of:

a. monopoly.
b. monopolistic competition.
c. perfect competition.
d. oligopoly.

2. Which of the following is the best example of a monopolistic competitor?

a. Diet centers.
b. General Motors.
c. American Telephone and Telegraph.
d. Wheat farmers.

3. Firms in a monopolistically competitive industry produce:

a. competitive goods only.
b. consumption goods only.
c. differentiated products.
d. homogeneous goods and services.

4.In the long run, both monopolistic competition and perfect competition result in;

a. a wide variety of brand-name choices for consumers.
b. excess capacity.
c. an efficient allocation of resources.
d. zero economic profit for firms.

5.Monopolistic competition is inefficient because:

a. entry is difficult.
b. the firms' marginal costs and marginal revenues are not equal.
c. firms have excess capacity in the long run.
d. firms earn positive economic profits.