Which of the following is part of the market structure for monopolistic competition

A market becomes non-competitive only when the agents that are acting in the marketplace can influence the price in a direct or indirect manner. These agents have the power to influence the price because of their numbers. These agents also have access to the relevant information, and they can also foresee the interdependence between their own strategies and those of other agents.

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What type of market structure is monopolistic competition?
What are the 4 conditions for monopolistic competition?
Which of the following is true of monopolistic competition?
Which of the following is a characteristic of a monopolistically competitive market structure?

We have listed below a number of multiple-choice questions on Non-competitive Markets to help students get a better understanding of the topic.

Which of the following statements is not a feature of the imperfect competition?
1. Imperfect competition has a large number of sellers
2. Imperfect competition has a single seller
3. The products manufactured under monopolistic competition are homogeneous in nature
4. The products manufactured under monopolistic competition are heterogeneous in nature

Answer: c

Which of the following statements is true about a monopolist?
1. A monopolist is a price taker
2. A monopolist is a price maker
3. A monopolist is a price acceptor
4. A monopolist is a price taker

Answer: b

Which of the following statements is true?
1. In perfect competition, the firm and industry both are one and the same
2. In monopolistic competition, the firm and industry both are one and the same
3. In monopoly, the firm and industry both are one and the same
4. In a duopoly, the firm and industry both are one and the same

Answer: c

Which of the following statements is true?
1. A market with two firms is known as a monopoly
2. A market with two firms is known as a duopoly
3. A market with two firms is known as an oligopoly
4. A market with two firms is known as a perfect competition

Answer: b

Which of the following statements is true?
1. A firm has no control over the price of its product under a monopoly
2. A firm has no control over the price of its product under perfect competition
3. A firm has no control over the price of its product under an oligopoly
4. A firm has no control over the price of its product under monopolistic competition

Answer: b

Which of the following statements about the monopoly market structure is true?
1. Under monopoly, the total revenue is maximized when marginal revenue is less than zero
2. Under monopoly, the total revenue is maximized when marginal revenue is equal to zero
3. Under monopoly, the total revenue is maximized when marginal revenue is greater than zero
4. None of the above

Answer: b

Which of the following statements is correct?
1. Price discrimination is one of the main features of perfect competition
2. Price discrimination is one of the main features of oligopoly
3. Price discrimination is one of the main features of monopolistic competition
4. Price discrimination is one of the main features of monopoly

Answer: d

Which of the following statements is accurate?
1. Oligopoly is a market that has a few large firms
2. Monopoly is a market that has a few large firms
3. Duopoly is a market that has a few large firms
4. Perfect competition is a market that has a few large firms

Answer: a

Which of the following statements is correct?
1. The concept of a supply curve is relevant only in the case of duopoly
2. The concept of a supply curve is relevant only in the case of perfect competition
3. The concept of a supply curve is relevant only in the case of oligopoly
4. The concept of a supply curve is relevant only in the case of monopoly

Answer: b

Which of the following characteristics of monopolistic competition is true?
1. It has a relatively large number of sellers in the market
2. It involves a product differentiation
3. The products manufactured under monopolistic competition are homogeneous in nature
4. It allows ease of entry into the market

Answer: c

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Market structures

Match the following descriptions with the appropriate market structure?

a)	An industry with significant barriers to entry and a single supplier
b)	A highly concentrated market with just a few interdependent firms
c)	A highly competitive market with slightly differentiated products
d)	A highly competitive market where firms are price takers
Yes, that's correct. Well done.No, that's not quite right. Try again.Your answer has been saved.

Market structures

Which of the following is the most competitive market structure?

	a)	Perfect competition
	b)	Monopolistic competition
	c)	Oligopoly
	d)	Monopoly
Please select an answerYes, well done.No, this is fairly competitive but not the most competitive.No, this is where a few firms only dominate the market.No, this is the least competitive.

Market structures

Which of the following is the least competitive market structure?

	a)	Perfect competition
	b)	Monopolistic competition
	c)	Oligopoly
	d)	Monopoly
Please select an answerNo, this is the most competitive.No, this is fairly competitive.No, this is where a few firms only dominate the market.Yes, well done.

Market structures

Which of the following is NOT a feature of monopolistic competition?

	a)	Numerous sellers
	b)	Product differentiation
	c)	Numerous buyers
	d)	Homogenous products
Please select an answerNo, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.Yes, this is not a feature - products are assumed to be differentiated. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.

Market structures

In which form of market structure would price be the key factor when competing?

	a)	Monopoly
	b)	Oligopoly
	c)	Monopolistic competition
	d)	Perfect competition
Please select an answerNo, there will be NO competition for the firm here.No, the few firms in this industry can also compete in non-price competition.No, firms will also compete through product differentiation. Yes, all products appear the same which means price becomes a crucial factor in competition. In perfect competition, there are many firms selling homogenous products. Prices are driven down to the same level.

What type of market structure is monopolistic competition?

Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.

What are the 4 conditions for monopolistic competition?

What are the four conditions to monopolistic competition? The four conditions to monopolistic competition are a large number of firms, similar but not perfectly substitutable products, low barriers to entry, and less than perfect information.

Which of the following is true of monopolistic competition?

Monopolistic competition is a competition where there are large number of sellers who sell related products which are no close substitutes of each other. Also there is no barriers of entry. Hence, the statement is true.

Which of the following is a characteristic of a monopolistically competitive market structure?

The correct answer to the first question is c. easy entry and exit. In a monopolistically competitive market many firms sell similar (but not identical) products (for example, the restaurant industry). The entry and exit if free in the monopolistically competitive markets.