American Military University ECON 201 ECON201 WEEK 7 Quiz 100% CORRECT

American Military University ECON 201 ECON201 WEEK 7 Quiz 100% CORRECT Question 1 Monopolistic competition is an industry characterized by a: • A. small number of firms producing identical products, with barriers to entry for firms. • B. small number of firms producing similar products, with relatively easy entry for firms. • C. large number of firms producing similar products, with relatively easy entry for firms. • D. large number of firms producing identical products, with relatively easy entry for firms. Answer Key:C Question 2 Imperfect competition is: • A. a market structure with no more than one firm in the industry. • B. an industry in which all firms are price takers. • C. a market structure where firms have a degree of monopoly power. • D. described by all of the above. Answer Key:C Question 3 Imperfect competition includes: • A. monopolistic competition and oligopoly. • B. monopolistic competition and monopoly. • C. perfect competition and monopoly. • D. monopoly and oligopoly. Answer Key:A Question 4 A firm in monopolistic competition maximizes its profit by producing at the level at which: • A. MC = ATC. • B. MC = AR. • C. MC = P. • D. MC = MR. Answer Key:D Question 5 An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called: • A. perfect competition. • B. monopoly. • C. monopolistic competition