Imperfect Market - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 2006

Product differentiation in monopolistic competition implies that

A. Different buyers pay different prices for the same product
B. Different products are sold to the same buyer
C. Sellers determine whom to sell their products to
D. The same product is available in different forms

Question 47:

• JAMB 2007

The diagram above shows a firm operating under conditions of monopolistic competition. The curve W represents its

A. Marginal cost
B. Average cost
C. Average revenue
D. Marginal revenue

Question 48:

• JAMB 2008

Which of the following producer is closest to being a monopolist?

A. A baker
B. A wheat farmer
C. A large chain store
D. An automobile plant

Question 49:

• JAMB 2009

If a monopolist is incurring short-run losses, this means that his

A. Selling price is above the short-run marginal cost
B. Selling price is below the short-run marginal cost
C. Average revenue is greater than marginal revenue
D. Average reveune is less than marginal revenue

Question 50:

• JAMB 2009

In the long run, one of the characteristics of monopolistic competitive firms is that they

A. Make abnormal profits
B. Suffer losses
C. Make normal profits
D. Collude with each other