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) Price collusion
B) Producing identical goods
C) Non-price competition.
D) Limiting market entry
  • 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) Independent.
B) Controlled by the government
C) Coordinated through agreements
D) Centralized across firms
  • 4. A firm's ability to slightly influence the price of its product shows that it has:
A) Perfect elasticity
B) No control
C) Market power.
D) Full monopoly
  • 5. A monopolistically competitive firm has some control over price because:
A) Government approves prices
B) There are few competitors
C) It sets industry standards
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) Government regulation
D) Elastic demand.
  • 7. "Monopolistic competition is a market structure where firms sell products that are:"
A) Homogeneous goods
B) Similar but not identical.
C) Regulated by the government
D) Perfect substitutes
  • 8. Monopolistic competition is a market structure where firms sell products that are:"
A) Similar but not identical.
B) Homogeneous goods
C) Regulated by the government
D) Perfect substitutes
  • 9. Heavy spending on advertising is an example of:
A) Cost leadership
B) Pure competition
C) Collusive pricing
D) Non-price 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) Technical efficiency
C) Allocative efficiency.
D) Economic inequality
  • 12. Which statement best defines economic efficiency in monopolistic competition?
A) Maximizing price to increase firm profit
B) Producing the most goods regardless of demand
C) Eliminating all forms of competition
D) Using resources in the best possible way to satisfy consumer needs.
  • 13. The freedom of entry and exit in monopolistic competition ensures:
A) Barriers to entry
B) Long-run normal profit.
C) Constant market dominance
D) Permanent monopoly power
  • 14. Which of the following best describes brand loyalty?
A) Companies copying competitors' designs
B) Consumers repeatedly buy the same brand despite alternatives.
C) Consumers switching to cheaper products easily
D) Firms changing prices frequently to attract customers
  • 15. In the long run, firms in monopolistic competition earn:
A) Negative profit
B) Normal profit.
C) No revenue
D) Supernormal profit
  • 16. The main feature that separates monopolistic competition from perfect competition is:
A) Price control
B) Product differentiation.
C) Single seller
D) Government regulation
  • 17. Which barrier to entry is created when a company owns a vital raw material like diamond mines?
A) Rent-Seeking
B) Price Discrimination
C) Economies of Scale
D) Control of Essential Resources.
  • 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) Free Rider
B) Competitive
C) Price Taker
D) Price Maker.
  • 20. Consumers pay higher electricity bills because there is only one provider in the market. This represents:
A) Rent-Seeking
B) Higher Prices.
C) Profit Maximization
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) 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) Restricted Output.
B) Higher Prices
C) X-Inefficiency
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) Rent-Seeking Behavior
B) Control of Essential Resources
C) Restricted Output
D) Barriers to Entry through Intellectual Property Rights.
  • 24. When a monopoly has little incentive to minimize costs or innovate, it leads to:
A) Price Discrimination
B) Rent-Seeking
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) Perfect Competition
B) Lack of Consumer Choice.
C) Market Equilibrium
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) Profit Maximization
C) Price Ceiling
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) P55
B) P70
C) P60
D) P66
  • 30. A phone is on sale for P450 (90% of original price). What was the original price?
A) P450
B) P500
C) P550
D) P300
Created with That Quiz — the math test generation site with resources for other subject areas.