Krugman's Economics for AP

Margaret Ray

Chapter 67 Introduction to Monopolistic Competition - all with Video Answers

Educators

Chapter Questions

Problem 1

Which of the following is a characteristic of monopolistic competition?
a. a standardized product
b. many sellers
c. substantial barriers to entry
d. positive long-run profits
e. a perfectly elastic demand curve

Manasvee Singh

Numerade Educator

Problem 2

Which of the following results is possible for a monopolistic competitor in the short run?
I. positive economic profit
II. normal profit
III. loss
a. I only
b. II only
c. III only
d. I and II only
e. I, II, and III

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Problem 3

Which of the following results is possible for a monopolistic competitor in the long run?
I. positive economic profit
II. normal profit
III. loss
a. I only
b. II only
c. III only
d. I and II only
e. I, II, and III

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07:22

Problem 4

Which of the following best describes a monopolistic competitor's demand curve?
a. upward-sloping
b. downward-sloping
c. U-shaped
d. horizontal
e. vertical

Jonathan Tapiwa

Numerade Educator

03:14

Problem 5

The long-run outcome in a monopolistically competitive industry results in
a. inefficiency because firms earn positive economic profits.
b. efficiency due to excess capacity.
c. inefficiency due to product diversity.
d. efficiency because price exceeds marginal cost.
e. a trade-off between higher average total cost and more product diversity.

Aanand Shah

Numerade Educator