What is the difference between perfect competition and monopolistic competition?

In PC, firms produce identical goods, while in MC, firms produce slightly different goods.

PC has a large # of small firms while MC does not.

PC has barriers to entry while MC does not.

In MC, firms produce identical goods, while in PC, firms produce slightly different goods.

PC has no barriers to entry while MC does.

A pure monopoly will produce the same amount of output as perfect competition when

it can perfectly price discriminate.

all the demanders pay one price.

it provides more consumer surplus than perfect competition.

it is forced into the fair return price.

List the four market structures in order from least competitive to most competitive.

Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition

Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition

If the technology associated with producing artificial intelligence (AI) continues to advance, over time the cost of producing AI will

decrease, firms that use the new tech will earn an economic profit, and in the long run, new firms will enter

decrease, firms that do not use the new tech will earn an economic profit and in the long runs new firms will enter.

increase, firms that use the new tech will earn an economic profit and in the long runs new firms will enter.

increase, firms that use the new tech will incur an economic loss, and in the long run, some firms will exit

decrease, firms that use the new tech will incur an economic loss, and in the long run, some firms will exit

A natural monopoly is one that arises from

ownership of a natural resource.

one firm buying all of a natural resource.

The marginal cost curve typically does which of the following?

Decreases and eventually increases.

Decreases at a decreasing rate.

Increases and eventually decreases.

A single price monopoly transfers

economic profit to the government.

economic profit to deadweight loss.

The term interdependent in oligopoly refers to the fact that

one firm's profits are affected by other firms' actions.

they definitely compete so that price is driven down to the monopoly level.

there are too many of them for any one firm to influence price.

they can produce either identical or differentiated goods.

How does the profit-maximizing behavior of a monopolistic competitor compare to that of perfect competitors, oligopolies, and monopolies?

They all try to find the level of output where their marginal cost is equal to their marginal revenue.

The monopolistic competitor is similar to monopoly but not to pure competition.

The monopolistic competitor is similar to pure competition but not to oligopoly.

The monopolistic competitor is similar to monopoly but not to oligopoly.

A perfectly competitive industry will produce a quantity of goods

greater than a single price monopoly.

less than a single price monopoly.

the same as a single price monopoly.

could be more, less, or the same as a single price monopoly depending if the MR curves lies above or below the D curve.

How do monopolies maximize profits?

They equate marginal cost with marginal revenue.

They keep marginal revenue above marginal cost.

They keep marginal cost above marginal revenue.

They control marginal costs and marginal revenue.

All of the following are things have to be able to do in order to price discriminate except

be readily sellable via vast markets such as the internet or other markets which advertise locally, nationally, and worldwide.

divide buyers into groups according to their willingness to pay.

prevent resale of the good or service.

identify which group a buyer falls (high willingness to pay or low willingness to pay)

AP Micro Market Structures

Authored by Jason Lee

Other Sciences

11th - 12th Grade

Used 55+ times

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Boeing and Airbus are in a duopoly that has reached the monopoly outcome. Boeing increases it's production. If Airbus increases its production, it's profits will and Boeing's profits will __.

increases; decreases

decreases; decreases

increases; does not change

decreases; increases

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the ice cream industry is perfectly competitive with a market price of $3 per bar, and Sigalow's Sweets charges, $3.50 per bar, how many bars will Sigalow sell?

more than he would at a price of $3

some, but fewer than he would at a price of $3

just as many as he would at a price of $3

none

more info is needed about the prices charged by other shops

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Zoe's Bakery determines that P < ATC and P > AVC. Zoe should:

continue to operate even though she is taking an economic loss.

continue to operate, as she is making an economic profit.

shut down immediately, as she is taking an economic loss.

raise the price until she has maximized her profits.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The price charged by a perfectly competitive firm is

lower the more the firm produces.

higher the more the firm produces.

the same as the market price.

indeterminate.

different than the price charged by competing firms.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The difference between a firm's total revenue and its total opportunity cost is the firm's

marginal revenue

economic profit

marginal profit

normal profit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a condition of perfect competition?

products produced by rival firms are perfect substitutes

individual firms can affect market supply

industry sales are small

restricted entry and exit

MULTIPLE CHOICE QUESTION

1 min • 1 pt

AT&T, Verizon, Sprint, and T-Mobile as firms in the wireless carrier industry are an example of a(n)

Monopoly

Oligopoly

monopolistic competition

perfect competition

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AP Micro Market Structures

Boeing and Airbus are in a duopoly that has reached the monopoly outcome. Boeing increases it's production. If Airbus increases its production, it's profits will ______ and Boeing's profits will ________.

If the ice cream industry is perfectly competitive with a market price of $3 per bar, and Sigalow's Sweets charges, $3.50 per bar, how many bars will Sigalow sell?

Zoe's Bakery determines that P < ATC and P > AVC. Zoe should:

The price charged by a perfectly competitive firm is

The difference between a firm's total revenue and its total opportunity cost is the firm's

Which of the following is a condition of perfect competition?

AT&T, Verizon, Sprint, and T-Mobile as firms in the wireless carrier industry are an example of a(n)

What is the difference between perfect competition and monopolistic competition?

A pure monopoly will produce the same amount of output as perfect competition when

List the four market structures in order from least competitive to most competitive.

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Boeing and Airbus are in a duopoly that has reached the monopoly outcome. Boeing increases it's production. If Airbus increases its production, it's profits will and Boeing's profits will __.