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22508_F25261 Pelones Bernard A: JM_BMEICO - Quiz
Contributed by: Gnet
  • 1. In monopolistic competition, firms compete mainly through:
A) Price collusion
B) Limiting market entry
C) Non-price competition.
D) Producing identical goods
  • 2. Producing goods at the lowest possible cost is known as:
A) Allocative efficiency
B) Productive efficiency.
C) Price leadership
D) Marginal analysis
  • 3. In monopolistic competition, decision-making by firms is:
A) Controlled by the government
B) Coordinated through agreements
C) Independent.
D) Centralized across firms
  • 4. A firm's ability to slightly influence the price of its product shows that it has:
A) No control
B) Market power.
C) Perfect elasticity
D) Full monopoly
  • 5. A monopolistically competitive firm has some control over price because:
A) It sets industry standards
B) Its product is differentiated.
C) Government approves prices
D) There are few competitors
  • 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) Homogeneous goods
B) Regulated by the government
C) Perfect substitutes
D) Similar but not identical.
  • 8. Monopolistic competition is a market structure where firms sell products that are:"
A) Regulated by the government
B) Perfect substitutes
C) Similar but not identical.
D) Homogeneous goods
  • 9. Heavy spending on advertising is an example of:
A) Pure competition
B) Non-price competition.
C) Collusive pricing
D) Cost leadership
  • 10. When a company changes packaging and advertising to stand out, it uses:
A) Price leadership
B) Predatory pricing
C) Product differentiation.
D) Price discrimination
  • 11. When resources are used to produce goods that best satisfy consumer preferences, it is called:
A) Allocative efficiency.
B) Productive efficiency
C) Technical efficiency
D) Economic inequality
  • 12. Which statement best defines economic efficiency in monopolistic competition?
A) Producing the most goods regardless of demand
B) Using resources in the best possible way to satisfy consumer needs.
C) Eliminating all forms of competition
D) Maximizing price to increase firm profit
  • 13. The freedom of entry and exit in monopolistic competition ensures:
A) Long-run normal profit.
B) Permanent monopoly power
C) Constant market dominance
D) Barriers to entry
  • 14. Which of the following best describes brand loyalty?
A) Firms changing prices frequently to attract customers
B) Companies copying competitors' designs
C) Consumers switching to cheaper products easily
D) Consumers repeatedly buy the same brand despite alternatives.
  • 15. In the long run, firms in monopolistic competition earn:
A) Normal profit.
B) No revenue
C) Negative profit
D) Supernormal profit
  • 16. The main feature that separates monopolistic competition from perfect competition is:
A) Product differentiation.
B) Single seller
C) Government regulation
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) Control of Essential Resources.
C) Price Discrimination
D) Economies of Scale
  • 18. Which barrier to entry is created when a company owns a vital raw material like diamond mines?
A) Price Discrimination
B) Rent-Seeking
C) Control of Essential Resources.
D) Economies of Scale
  • 19. a monopoly is called a ____ because it has full control over sitting the price of its product
A) Competitive
B) Free Rider
C) Price Maker.
D) Price Taker
  • 20. Consumers pay higher electricity bills because there is only one provider in the market. This represents:
A) Higher Prices.
B) Profit Maximization
C) Rent-Seeking
D) Price Ceiling
  • 21. A company dominates the market because it owns all major water sources in a region. This monopoly is due to:
A) Control of Essential Resources.
B) Technological Superiority
C) Price Discrimination
D) Market Equilibrium
  • 22. Which social cost of monopoly explains why consumers pay more compared to perfect competition?
A) X-Inefficiency
B) Reduced Consumer Choice
C) Restricted Output.
D) Higher Prices
  • 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) Control of Essential Resources
C) Barriers to Entry through Intellectual Property Rights.
D) Rent-Seeking Behavior
  • 24. When a monopoly has little incentive to minimize costs or innovate, it leads to:
A) Rent-Seeking
B) X-Inefficiency.
C) Price Discrimination
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) Market Equilibrium
C) Lack of Consumer Choice.
D) Price Ceiling
  • 26. When a monopolist sets output where MC = MR, it is practicing what principle?
A) Price Control
B) Rent-Seeking
C) Profit Maximization.
D) Market Equilibrium
  • 27. A mining firm controls most of the world's diamond production, making it the sole major supplier. This is an example of:
A) Price Ceiling
B) Control of Essential Resources.
C) Rent-Seeking
D) Profit Maximization
  • 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) 4000
B) 3500
C) 1200
D) 2000
  • 29. A P80 item is 25% off, then taxed 10% on the sale price.

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