St. Philips College

ECON 101

Chapter 12

1)Nonprice competition results in____________

2. Monopolistic competition results in

3. Cross price elasticity measures

4. A monopolistically competitive firm maximizes profits or minimizes losses in the short run by

5. Which of the following characterizes monopolistic competition?

6. Monopolistic competition results in allocative

7. Which of the following real-world situations is the result of excess capacity in a monopolistically competitive market?

8. One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that

9. Which of the following industries is not an example of monopolistic competition?

10. Which of the following is not true about advertising?

11. The demand curve faced by a monopolistically competitive firm is

12. Which of the following is not characteristic of monopolistic competition?

13. When a monopolistically competitive firm advertises, it is attempting to increase

14. Which of the following market structures will have higher prices in the long run than perfect competition, ceteris paribus?

15. The main difference between perfect competition and monopolistic competition is

16. When new firms enter a monopolistically competitive industry, ceteris paribus, the

17. In monopolistic competition, if economic profits are being earned, which of the following will not happen?

18. In monopolistic competition, a firm's demand curve is tangent to the ATC curve in the long run because

19. If a monopolistically competitive firm raises its price, it will

20. Monopolistically competitive firms have a "monopoly" element to them because