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22508_F25261 Pelones Bernard A: JM_BMEICO - Quiz
  • 1. In monopolistic competition, firms compete mainly through:
A) Non-price competition.
B) Producing identical goods
C) Price collusion
D) Limiting market entry
  • 2. Producing goods at the lowest possible cost is known as:
A) Marginal analysis
B) Productive efficiency.
C) Allocative efficiency
D) Price leadership
  • 3. In monopolistic competition, decision-making by firms is:
A) Coordinated through agreements
B) Centralized across firms
C) Controlled by the government
D) Independent.
  • 4. A firm's ability to slightly influence the price of its product shows that it has:
A) No control
B) Market power.
C) Full monopoly
D) Perfect elasticity
  • 5. A monopolistically competitive firm has some control over price because:
A) Its product is differentiated.
B) It sets industry standards
C) There are few competitors
D) Government approves prices
  • 6. What allows consumers to easily switch between brands in monopolistic competition?
A) Price rigidity
B) Single product type
C) Government regulation
D) Elastic demand.
  • 7. "Monopolistic competition is a market structure where firms sell products that are:"
A) Perfect substitutes
B) Similar but not identical.
C) Homogeneous goods
D) Regulated by the government
  • 8. Monopolistic competition is a market structure where firms sell products that are:"
A) Homogeneous goods
B) Similar but not identical.
C) Perfect substitutes
D) Regulated by the government
  • 9. Heavy spending on advertising is an example of:
A) Collusive pricing
B) Non-price competition.
C) Pure competition
D) Cost leadership
  • 10. When a company changes packaging and advertising to stand out, it uses:
A) Predatory pricing
B) Product differentiation.
C) Price leadership
D) Price discrimination
  • 11. When resources are used to produce goods that best satisfy consumer preferences, it is called:
A) Technical efficiency
B) Productive efficiency
C) Allocative efficiency.
D) Economic inequality
  • 12. Which statement best defines economic efficiency in monopolistic competition?
A) Maximizing price to increase firm profit
B) Using resources in the best possible way to satisfy consumer needs.
C) Eliminating all forms of competition
D) Producing the most goods regardless of demand
  • 13. The freedom of entry and exit in monopolistic competition ensures:
A) Barriers to entry
B) Constant market dominance
C) Permanent monopoly power
D) Long-run normal profit.
  • 14. Which of the following best describes brand loyalty?
A) Companies copying competitors' designs
B) Consumers switching to cheaper products easily
C) Consumers repeatedly buy the same brand despite alternatives.
D) Firms changing prices frequently to attract customers
  • 15. In the long run, firms in monopolistic competition earn:
A) Normal profit.
B) Supernormal profit
C) No revenue
D) Negative profit
  • 16. The main feature that separates monopolistic competition from perfect competition is:
A) Government regulation
B) Product differentiation.
C) Single seller
D) Price control
  • 17. Which barrier to entry is created when a company owns a vital raw material like diamond mines?
A) Rent-Seeking
B) Price Discrimination
C) Economies of Scale
D) Control of Essential Resources.
  • 18. Which barrier to entry is created when a company owns a vital raw material like diamond mines?
A) Rent-Seeking
B) Economies of Scale
C) Control of Essential Resources.
D) Price Discrimination
  • 19. a monopoly is called a ____ because it has full control over sitting the price of its product
A) Free Rider
B) Price Taker
C) Price Maker.
D) Competitive
  • 20. Consumers pay higher electricity bills because there is only one provider in the market. This represents:
A) Higher Prices.
B) Profit Maximization
C) Price Ceiling
D) Rent-Seeking
  • 21. A company dominates the market because it owns all major water sources in a region. This monopoly is due to:
A) Technological Superiority
B) Control of Essential Resources.
C) Price Discrimination
D) Market Equilibrium
  • 22. Which social cost of monopoly explains why consumers pay more compared to perfect competition?
A) Restricted Output.
B) Higher Prices
C) Reduced Consumer Choice
D) X-Inefficiency
  • 23. A research-based firm spends billions on R&D and secures patents, preventing rivals from duplicating its medicine.This advantage shows:
A) Restricted Output
B) Barriers to Entry through Intellectual Property Rights.
C) Rent-Seeking Behavior
D) Control of Essential Resources
  • 24. When a monopoly has little incentive to minimize costs or innovate, it leads to:
A) Rent-Seeking
B) Price Discrimination
C) X-Inefficiency.
D) Economies of Scale
  • 25. Despite complaints about high prices, a monopoly retains customers because no alternative products exist. The market condition illustrated here is:
A) Perfect Competition
B) Price Ceiling
C) Lack of Consumer Choice.
D) Market Equilibrium
  • 26. When a monopolist sets output where MC = MR, it is practicing what principle?
A) Market Equilibrium
B) Price Control
C) Profit Maximization.
D) Rent-Seeking
  • 27. A mining firm controls most of the world's diamond production, making it the sole major supplier. This is an example of:
A) Profit Maximization
B) Rent-Seeking
C) Price Ceiling
D) Control of Essential Resources.
  • 28. The ratio of fiction to non-fiction books is 3:5. If there are 3,200 books total, how many are non-fiction?

    1200
A) 3500
B) 4000
C) 2000
D) 1200
  • 29. A P80 item is 25% off, then taxed 10% on the sale price.

    What is the total cost?
A) P55
B) P60
C) P66
D) P70
  • 30. A phone is on sale for P450 (90% of original price). What was the original price?
A) P550
B) P300
C) P500
D) P450
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