22508_F25261 Pelones Bernard A: JM

22508_F25261 Pelones Bernard A: JM_BMEICO

1. In monopolistic competition, firms compete mainly through:

A) Non-price competition.
B) Producing identical goods
C) Limiting market entry
D) Price collusion

2. Producing goods at the lowest possible cost is known as:

A) Allocative efficiency
B) Price leadership
C) Marginal analysis
D) Productive efficiency.

3. In monopolistic competition, decision-making by firms is:

A) Controlled by the government
B) Coordinated through agreements
C) Centralized across firms
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) There are few competitors
B) It sets industry standards
C) Its product is differentiated.
D) Government approves prices

6. What allows consumers to easily switch between brands in monopolistic competition?

A) Price rigidity
B) Elastic demand.
C) Single product type
D) Government regulation

7. "Monopolistic competition is a market structure where firms sell products that are:"

A) Homogeneous goods
B) Regulated by the government
C) Similar but not identical.
D) Perfect substitutes

8. 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.

9. Heavy spending on advertising is an example of:

A) Collusive pricing
B) Cost leadership
C) Non-price competition.
D) Pure competition

10. When a company changes packaging and advertising to stand out, it uses:

A) Price discrimination
B) Predatory pricing
C) Product differentiation.
D) Price leadership

11. When resources are used to produce goods that best satisfy consumer preferences, it is called:

A) Productive efficiency
B) Allocative efficiency.
C) Technical efficiency
D) Economic inequality

12. Which statement best defines economic efficiency in monopolistic competition?

A) Eliminating all forms of competition
B) Producing the most goods regardless of demand
C) Using resources in the best possible way to satisfy consumer needs.
D) Maximizing price to increase firm profit

13. The freedom of entry and exit in monopolistic competition ensures:

A) Constant market dominance
B) Long-run normal profit.
C) Permanent monopoly power
D) Barriers to entry

14. Which of the following best describes brand loyalty?

A) Consumers repeatedly buy the same brand despite alternatives.
B) Consumers switching to cheaper products easily
C) Companies copying competitors' designs
D) Firms changing prices frequently to attract customers

15. In the long run, firms in monopolistic competition earn:

A) No revenue
B) Normal profit.
C) Supernormal profit
D) Negative profit

16. The main feature that separates monopolistic competition from perfect competition is:

A) Product differentiation.
B) Government regulation
C) Price control
D) Single seller

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) Economies of Scale
B) Rent-Seeking
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) Price Taker
B) Free Rider
C) Price Maker.
D) Competitive

20. Consumers pay higher electricity bills because there is only one provider in the market. This represents:

A) Rent-Seeking
B) Price Ceiling
C) Higher Prices.
D) Profit Maximization

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) X-Inefficiency
B) Restricted Output.
C) Higher Prices
D) Reduced Consumer Choice

23. A research-based firm spends billions on R&D and secures patents, preventing rivals from duplicating its medicine.This advantage shows:

A) Control of Essential Resources
B) Restricted Output
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) Price Ceiling
B) Market Equilibrium
C) Lack of Consumer Choice.
D) Perfect Competition

26. When a monopolist sets output where MC = MR, it is practicing what principle?

A) Profit Maximization.
B) Market Equilibrium
C) Rent-Seeking
D) Price Control

27. A mining firm controls most of the world's diamond production, making it the sole major supplier. This is an example of:

A) Control of Essential Resources.
B) Rent-Seeking
C) Price Ceiling
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) 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) P70
D) P66

30. A phone is on sale for P450 (90% of original price). What was the original price?

A) P300
B) P450
C) P500
D) P550

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