Question

Question 21: (1 point) Fill in the blanks: Indicate the market structure - monopolistic competition, oligopoly, neither or both, suggested by the characteristic in the following statement. The firms in the market face a downward sloping demand curve. ____________________________________________

Question 22: (1 point) Fill in the blanks: Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: New firms face barriers to entry. ____________

Question 23: (1 point) Fill in the blanks: Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: There are only a few big firms in the market. ____________

Question 24: (1 point) Fill in the blanks: Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: The market has only one seller. ____________________________________________

Question 25: (1 point) Fill in the blanks: Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: It is relatively costly for new firms to break into the market. ____________

Question 26: (1 point) Fill in the blanks: Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: No firm can influence the price of the product sold. ____________________________________________

Answer 1

Answer 21 Monopolistic competition - In monopolistic competition , demand curve is downward sloping. It represents that at high prices demand falls and in order to sale the product to consumer , there is need to reduce the price.

Answer 22 Oligopoly- It is a market structure where new firms bear barriers to entry. The reason is that here in the market there are only few big firms . Sometimes there is cartel between them . In oligopoly market firm bear barriers for entry when existing firms earn positive economic profit.

Answer 23 Oligopoly- It is the market in which only few big firms exist and compete with each other to earn profit.

answer 24 Neither monopolistic competition nor oligopoly has one seller. In monopolistic competition there are many seller and in oligopoly there are few sellers.

Answer 25 Oligopoly- It is relatively costly for new firms to break in to the market.

Answer 26 Neither oligopoly not monopolistic competition . The reason is that they can increase or decrease the price but i perfect competition , firms are price taker has no influence on the price

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