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22508_F25261 Pelones Bernard A: JM_BMEICO - Quiz
Contributed by: Gnet
  • 1. In monopolistic competition, firms compete mainly through:
A) Limiting market entry
B) Price collusion
C) Non-price competition.
D) Producing identical goods
  • 2. Producing goods at the lowest possible cost is known as:
A) Price leadership
B) Allocative efficiency
C) Productive efficiency.
D) Marginal analysis
  • 3. In monopolistic competition, decision-making by firms is:
A) Coordinated through agreements
B) Controlled by the government
C) Centralized across firms
D) Independent.
  • 4. A firm's ability to slightly influence the price of its product shows that it has:
A) Perfect elasticity
B) Market power.
C) Full monopoly
D) No control
  • 5. A monopolistically competitive firm has some control over price because:
A) It sets industry standards
B) Government approves prices
C) There are few competitors
D) Its product is differentiated.
  • 6. What allows consumers to easily switch between brands in monopolistic competition?
A) Government regulation
B) Price rigidity
C) Single product type
D) Elastic demand.
  • 7. "Monopolistic competition is a market structure where firms sell products that are:"
A) Homogeneous goods
B) Perfect substitutes
C) Regulated by the government
D) Similar but not identical.
  • 8. Monopolistic competition is a market structure where firms sell products that are:"
A) Regulated by the government
B) Homogeneous goods
C) Similar but not identical.
D) Perfect substitutes
  • 9. Heavy spending on advertising is an example of:
A) Collusive pricing
B) Pure competition
C) Non-price competition.
D) Cost leadership
  • 10. When a company changes packaging and advertising to stand out, it uses:
A) Price leadership
B) Product differentiation.
C) Predatory pricing
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) 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) Barriers to entry
B) Permanent monopoly power
C) Constant market dominance
D) Long-run normal profit.
  • 14. Which of the following best describes brand loyalty?
A) Consumers switching to cheaper products easily
B) Consumers repeatedly buy the same brand despite alternatives.
C) Firms changing prices frequently to attract customers
D) Companies copying competitors' designs
  • 15. In the long run, firms in monopolistic competition earn:
A) No revenue
B) Negative profit
C) Normal profit.
D) Supernormal profit
  • 16. The main feature that separates monopolistic competition from perfect competition is:
A) Price control
B) Product differentiation.
C) Government regulation
D) Single seller
  • 17. Which barrier to entry is created when a company owns a vital raw material like diamond mines?
A) Control of Essential Resources.
B) Price Discrimination
C) Rent-Seeking
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) Economies of Scale
C) Control of Essential Resources.
D) Rent-Seeking
  • 19. a monopoly is called a ____ because it has full control over sitting the price of its product
A) Price Maker.
B) Price Taker
C) Competitive
D) Free Rider
  • 20. Consumers pay higher electricity bills because there is only one provider in the market. This represents:
A) Profit Maximization
B) Price Ceiling
C) Higher Prices.
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) Price Discrimination
B) Technological Superiority
C) Control of Essential Resources.
D) Market Equilibrium
  • 22. Which social cost of monopoly explains why consumers pay more compared to perfect competition?
A) Reduced Consumer Choice
B) X-Inefficiency
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) Control of Essential Resources
B) Barriers to Entry through Intellectual Property Rights.
C) Restricted Output
D) Rent-Seeking Behavior
  • 24. When a monopoly has little incentive to minimize costs or innovate, it leads to:
A) Price Discrimination
B) Rent-Seeking
C) Economies of Scale
D) X-Inefficiency.
  • 25. Despite complaints about high prices, a monopoly retains customers because no alternative products exist. The market condition illustrated here is:
A) Market Equilibrium
B) Lack of Consumer Choice.
C) Perfect Competition
D) Price Ceiling
  • 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) Price Ceiling
B) Rent-Seeking
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) 4000
D) 1200
  • 29. A P80 item is 25% off, then taxed 10% on the sale price.

    What is the total cost?
A) P70
B) P60
C) P66
D) P55
  • 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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