Similarity between competition and monopolistic competition
Problems-
1. Price is equal to average total cost if the firm:
A. is never in productive equilibrium.
B. is earning a normal rate of profit.
C. is earning zero profits.
D. needs to cut costs in the short run.
Use the following data
Labor Quantity
1 9
2 20
3 33
4 40
2. The main similarity between competition and monopolistic competition is that:
A. competition has many sellers selling a product, while monopolistic competition has one firm selling many products.
B. both make no economic profit in the long run.
C. a competitive market has many buyers, while monopolistic competition has only one buyer.
D. both produce standardized products.
Additional Information-
These multiple choice problems belong to Economics. The first problem discusses about price and total cost being equal and the second problem is about the similarity between competition and monopolistic competition.
