Monopolistic Competition: AP Microeconomics Online Test

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

1583 days 15 hours ago

Jahongir

very good test!!! do it

1643 days 6 hours 14 minutes ago

SoftSkills and Spoken English Courses
EnglishteachersVinodita Sankhyan Namrata Arora
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