Econ Ch 13

Which of the following is a barrier to entry that could keep potential rivals out of a monopolized market?

All of the above

Which of the following is NOT an example of nonprice competition?

Buying ads that state the product is priced lower than rivals' products.

Which of the following statements concerning nonprice competition in oligopoly markets is true?

Nonprice competition is important when the products sold in the market are differentiated.

Which of the following statements about a purely competitive market is FALSE?

The market demand curve and the demand curve for any individual sellers' product are both downward sloping.

Which of the following is NOT a feature used to distinguish among the four market models?

Whether the firms in the market are proprietorships, partnerships, or corporations.

Which of the following is NOT a characteristic of a monopolistic market?

Widespread product differentiation is found in the market.

Financial, legal, technical, and other factors that prevent firms from coming into a market to compete are called:

barriers to entry.

In evaluating profit-maximizing or loss-minimizing behavior, the main difference between firms in pure competition and monopoly is found in the:

demand and revenue conditions they face.

The demand curve for an individual seller in monopolistic competition is:

downward sloping

If a purely competitive firm is just breaking even, its owner is:

earning no economic profit.

In pure competition over the long run, entry of new firms into the market occurs if:

economic profits are earned, and results in a lower market price

The "shutdown loss" for a firm is:

equal to total fixed cost.

An important factor explaining the behavior of sellers in oligopolistic markets is:

mutual interdependence

Sellers incur losses over the long run in

none of the market structures.

A monopolistic competitor will lose some, but not all, of its buyers when it raises its price by a small amount. The ability to keep some buyers is mainly due to:

product differentiation

Which is the correct sequence if we are ranking market structures from that with the largest number of sellers to that with the smallest?

pure competition, monopolistic competition, oligopoly, and monopoly.

Sellers are in the same market if they:

sell similar products and compete for the same buyers

A monopolistically competitive seller has:

some control over the price of its product because of product differentiation.

A market is composed of a group of firms:

that produce similar products and compete for the same buyers.