Monopolistic Competition: AP Microeconomics online Test

Under Monopolistic Competition, in the Short run, a firm:
Incurs losses
Earns Normal Profit
Earns Super Normal Profit
Might earn normal or super normal profit or incur loss
None of the Above
Under Monopolistic Competition, in the Long run, besides other conditions, Equilibrium is reached when:
MC = AC
Average Total Cost = Price
MC = Price
MR = Price
All of the Above
The development of the theory of Monopolistic Competition is associated with:
E. H. Chamberlin
Alfred Marshall
Joan Robinson
Paul Sweezy
Stigler
The short run Supply Curve of the Monopolistic Competitors is:
Possible to define only when the factor prices remain constant
Not possible to define
The rising portion of the Marginal Cost Curve over and above the Variable Cost Curve
The rising part of the Marginal Cost Curve
The rising part of the Marginal Revenue
In a Monopolistic Competition firm, the Demand Curve is relatively more elastic if the number of firms is:
Few
Large
One
Two
None of the Above
In the Monopolistic Firm, the Elasticity of AR Curve or the Demand Curve depends on: I. The total number of firms in the group II. The total number of consumers of the commodity III. the extent of Product Differentiation
I only
II only
III only
I and II
I and III
After the firms in a group of Monopolistic Competitors attain Equilibrium, they:
Charge different prices for identical output produced
Charge different prices for different output produced
Charge identical prices for different output produced
Charge identical prices for identical output produced
None of the Above
The Monopolistic Firm can: I. Control the Output II. Determine Price III. Differentiate its product from other firms
Only I
Only II
I and III
II and III
Either I and III or II and III
Under Monopolistic Competition, the Equilibrium of the firm occurs at the Output which is:
Less than the Output at which the Average Cost is at the minimum level
Less than the Output at which the Average Cost is at the maximum level
Less than the Output at which the Average Cost is equal to the Average Revenue
Less than the Output at which the Average Cost is highest
Less than the Output at which the Marginal Cost is equal to the Marginal Revenue
A firm under Monopolistic Competition advertises to:
Lower the Cost of Production
Compete with rival firms
Increase sales and profit
Lower the production
To account for a fall in price
Description:

Take this short test to assess the basics of the Monopolistic Competition Market Structure, its features and conditions for Equilibrium. Here is a 7-minute short test on the basics of Monopolistic Competition. You’ll find Multiple Choice questions on the basics of the features of Monopolistic Competition.

Discussion

SoftSkills and Spoken English Courses

Thanks Jahongir, do attempt the other tests as well

1396 days 11 hours 9 minutes ago

Jahongir

very good test!!! do it

1456 days 2 hours 22 minutes ago

SoftSkills and Spoken English Courses
EnglishteachersVinodita Sankhyan Namrata Arora
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