Item12Item 12A monopolistic industry:Multiple Choicehas no entry barriers.has a downward sloping demand curve.produces a product or service for which there are many close substitutes.earns only a normal profit in the long run.

Item11Item 11A monopolist is:Multiple Choiceany firm realizing all existing economies of scale.any firm whose demand curve is downward sloping.any firm which can engage in price discrimination.a one-firm industry.

Monopolistic competition is characterized by which of the following?Multiple select question.Firms make no attempt to distinguish their product or service from competing productsEntry to or exit from the industry is quite easyA relatively large number of sellers produce differentiated productsThere is widespread non-price competition

Multiple ChoiceBecause the business is only one of a few firms who can produce the product, the competition is fierce, which often drives the price of the product down.Businesses find it difficult to differentiate their products from competitors.Being the only business producing a product comes with intense pressure from consumers.Consumers cannot distinguish between your product and a competitor’s product at all.There is no real drawback to being in monopolistic competition.

Multiple Choice QuestionA major trade-off that occurs in monopolistically competitive industries is that, as product differentiation increases,Multiple choice question.allocative efficiency also increases.productive efficiency also increases.consumer choice decreases.excess capacity also increases.

An industry composed of three firms, each of which considers the potential reactions of its rivals in making pricing decisions, yet is not concerned with the potential entry of other firms, can best be described as:Multiple Choicecompetitive monopolymonopolistic competitionan oligopolya monopolyperfect competition