1 What does monopolistic competition have in common with per

1) What does monopolistic competition have in common with perfect competition? A) A standardised product. B) Barriers to exit but no barriers to entry. C) A large number of firms and freedom of entry and exit. D) Product differentiation. E) The ability to make an economic profit in the long run 2) A differentiated product has A) many different complements. B) many perfect substitutes. C) close but not perfect substitutes. D) no close substitutes. E) no substitutes of any kind. 3) Firms in monopolistic competition have demand curves that are A) U-shaped. B) downward sloping. C) upward sloping. D) horizontal. E) vertical. 4) In monopolistic competition, profit is maximised by producing so that marginal revenue A) equals price. B) equals average total cost but not marginal cost. C) equals marginal cost and which are less than price D) is negative. E) equals marginal cost and equals price

Solution

ans 1 option c is correct

ans 2 option c is correct

ans 3 option b is correct

ans 4 option c is correct

ans 5 option d is correct