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

    What is the total cost?
A) P55
B) P70
C) P66
D) P60
  • 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
Created with That Quiz — the math test generation site with resources for other subject areas.