#1
Which characteristic is common in monopolistic competition?
Homogeneous products
Perfect information
Product differentiation
Few sellers
#2
What is a key feature of monopolistic competition?
Identical products
Perfect competition
Barriers to entry
Product differentiation
#3
Which characteristic of monopolistic competition distinguishes it from perfect competition?
Many buyers and sellers
Identical products
Product differentiation
Perfect information
#4
Which term is used to describe a situation where a firm can set its own price in monopolistic competition?
Price taker
Price maker
Perfect competitor
Monopoly
#5
What is the primary source of market power in monopolistic competition?
Government regulations
Economies of scale
Product differentiation
Perfect information
#6
Which concept is associated with monopolistic competition and involves creating a unique brand image for a product?
Perfect competition
Brand loyalty
Product bundling
Brand differentiation
#7
Which of the following is a drawback of monopolistic competition?
Inefficiency
Low profits
Perfect information
Few sellers
#8
What is a common characteristic of both monopolistic competition and perfect competition?
Product differentiation
Barriers to entry
Few sellers
Price maker
#9
In monopolistic competition, what role does advertising often play?
Eliminating competition
Reducing prices
Increasing product differentiation
Creating a perfect market
#10
What happens to the demand curve for a firm in monopolistic competition in the long run?
Becomes perfectly elastic
Becomes perfectly inelastic
Shifts to the left
Shifts to the right
#11
In monopolistic competition, how does excess capacity affect the long-run equilibrium?
Increases production
Decreases production
Stabilizes production
No impact on production
#12
What is the main difference between monopolistic competition and monopoly?
Number of sellers
Degree of product differentiation
Market demand curve
Barriers to entry
#13
In monopolistic competition, what is the impact of entry and exit of firms on economic profit in the long run?
Economic profit increases
Economic profit decreases
Economic profit remains constant
Economic profit becomes zero