22508_F25261 Pelones Bernard A: JM

22508_F25261 Pelones Bernard A: JM_BMEICO

1. In monopolistic competition, firms compete mainly through:

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

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

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

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

A) Coordinated through agreements
B) Independent.
C) Controlled by the government
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) Perfect elasticity
C) Market power.
D) Full monopoly

5. A monopolistically competitive firm has some control over price because:

A) Its product is differentiated.
B) It sets industry standards
C) Government approves prices
D) There are few competitors

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

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

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

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

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

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

9. Heavy spending on advertising is an example of:

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

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

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

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

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

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

A) Producing the most goods regardless of demand
B) Eliminating all forms of competition
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) Long-run normal profit.
B) Barriers to entry
C) Constant market dominance
D) Permanent monopoly power

14. Which of the following best describes brand loyalty?

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

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

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

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

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

17. Which barrier to entry is created when a company owns a vital raw material like diamond mines?

A) Economies of Scale
B) Price Discrimination
C) Control of Essential Resources.
D) Rent-Seeking

18. Which barrier to entry is created when a company owns a vital raw material like diamond mines?

A) Price Discrimination
B) Control of Essential Resources.
C) Rent-Seeking
D) Economies of Scale

19. a monopoly is called a ____ because it has full control over sitting the price of its product

A) Price Maker.
B) Free Rider
C) Price Taker
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) 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) Market Equilibrium
B) Technological Superiority
C) Control of Essential Resources.
D) Price Discrimination

22. Which social cost of monopoly explains why consumers pay more compared to perfect competition?

A) Restricted Output.
B) X-Inefficiency
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) 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) X-Inefficiency.
B) Rent-Seeking
C) Economies of Scale
D) Price Discrimination

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) Price Control
B) Profit Maximization.
C) Rent-Seeking
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) Rent-Seeking
B) Price Ceiling
C) Profit Maximization
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) 2000
B) 3500
C) 1200
D) 4000

29. A P80 item is 25% off, then taxed 10% on the sale price.

What is the total cost?

A) P60
B) P66
C) P55
D) P70

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

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

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