Monopolistic competition - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 2005

In the long run, the equilibrium point of a monoplistic firm is a point where the

A. Marginal cost curve is tangential to the average fixed cost curve
B. Demand curve is tangential to the average variable cost curve
C. Supply cuvre is tangential to the marginal cost curve
D. Demand curv is tangential to the average cost curve

Question 7:

• 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 8:

• 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 9:

• 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

Question 10:

• JAMB 2010

One of the characteristics of monopolistic competition is that

A. There is mobility of factors of production
B. No single seller dominates the market
C. The firms are price-takers
D. Consumers have perfect knowledge of price