Economics 77. A market with a large number of sellers and a high level of product differentiation is knownasa. A perfectly competitive market.b. A monopoly.c. An oligopoly.d. A monopolistically competitive market.78. Which of the following market structures has the flattest firm demand curve, all else equal?a. Perfect competition.b. Monopolistic competition.c. Oligopoly.d. Monopoly.79. What is the relationship among marginal revenue, marginal cost, and price in a firm withmarket power?a. Marginal cost = Marginal revenue = Price.b. Marginal cost = Marginal revenue < Price.c. Marginal cost = Marginal revenue > Price.d. Marginal revenue < Price = Marginal cost.80. Which of the following statements about price and marginal cost in competitive andmonopolized markets is true?a. In competitive markets, price equals marginal cost; in monopolized markets, priceexceeds marginal cost.b. In competitive markets, price equals marginal cost; in monopolized markets, priceequals marginal cost.c. In competitive markets, price exceeds marginal cost; in monopolized markets, priceexceeds marginal cost.d. In competitive markets, price exceeds marginal cost; in monopolized markets, priceequals marginal cost.81. One of the market failures caused by market power isa. reduced demand.b. high costs.c. high price.d. underproduction.

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A market with a large number of sellers and a high level of product differentiation is known as a. A perfectly competitive market. b. A monopoly. c. An oligopoly. d. A monopolistically competitive market. 78. Which of the f

A market with a large number of sellers and a high level of product differentiation is known as a. A perfectly competitive market. b. A monopoly. c. An oligopoly. d. A monopolistically competitive market. 78. Which of the f

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Economics

77. A market with a large number of sellers and a high level of product differentiation is known
as
a. A perfectly competitive market.
b. A monopoly.
c. An oligopoly.
d. A monopolistically competitive market.
78. Which of the following market structures has the flattest firm demand curve, all else equal?
a. Perfect competition.
b. Monopolistic competition.
c. Oligopoly.
d. Monopoly.
79. What is the relationship among marginal revenue, marginal cost, and price in a firm with
market power?
a. Marginal cost = Marginal revenue = Price.
b. Marginal cost = Marginal revenue < Price.
c. Marginal cost = Marginal revenue > Price.
d. Marginal revenue < Price = Marginal cost.
80. Which of the following statements about price and marginal cost in competitive and
monopolized markets is true?
a. In competitive markets, price equals marginal cost; in monopolized markets, price
exceeds marginal cost.
b. In competitive markets, price equals marginal cost; in monopolized markets, price
equals marginal cost.
c. In competitive markets, price exceeds marginal cost; in monopolized markets, price
exceeds marginal cost.
d. In competitive markets, price exceeds marginal cost; in monopolized markets, price
equals marginal cost.
81. One of the market failures caused by market power is
a. reduced demand.
b. high costs.
c. high price.
d. underproduction.

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