Monopolistic competition - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 1988

In the short run, the monopolistic competitors?

A. Always makes profit
B. Always incurs a loss
C. Always breaks -even
D. May close down

Question 3:

• JAMB 1990

Which of the following is applicable to a monopolistic firm operating at the output where marginal cost equals marginal revenue?

A. Cost of production is at a medium
B. The plant is of optimum size
C. Price is above marginal revenue
D. Average variable cost is at a minimum

Question 4:

• JAMB 1995

In the diagram above, the total revenue of the monopolist is given by the area

A. OQ₁MP₂
B. P₄MTP₁
C. OQ₁ TP₁
D. OQ₂SP₂

Question 5:

• JAMB 2004

By advertising, a monopolistic competitive firm tries to shift its

A. Supply curve to the right
B. Demand curve to the right
C. Supply curve to the left
D. Demand curve to the left