Problem 1: The monopolist and the perfect competitor differ in that:
- they face different demand curves
- the monopolist does not always produce at an output at which MC=MR
- the monopolist is always a large firm
- the monopolist is more efficient
Problem 2: The monopolist is a(n):
- imperfect competitor and has a horizontal demand curve
- imperfect competitor and has a downward sloping demand curve
- perfect competitor and has a horizontal demand curve
- perfect competitor and has a downward sloping demand curve
Problem 3: Monopolistic competition differs from perfect completion only with the respect to:
- the number of firms in the industry
- product differentiation
- barriers to entry
- economics of scale
Problem 4: In the long run in monopolistic competition:
- most firms are making a profit
- the absence of entry barriers ensures that there are no profits
- economics of scale ensure that there are no profits
- most firms are losing money