.13..objective.

Question 1 In monopolistic competition: a) Firms face a perfectly elastic demand curve b) All products are homogeneous c) Firms make normal profits in the longrun d) There are barriers to entry to prevententry Question 2 In monopolistic competition: a) Demand is perfectly elastic b) Products are homogeneous c) Marginal revenue = price d) The marginal revenue is below the demand curve and diverges Question 3 In monopolistic competition firms profitmaximize where: a) Marginal revenue = Average revenue b) Marginal revenue = Marginal cost c) Marginal revenue = Average cost d) Marginal revenue = Total cost Question 4 Which of the following is not one of the four Ps in marketing? a) Product b) Price c) Place d) Presence Question 5 Effective branding will tend to make: a) Demand more price inelastic b) Supply more price inelastic c) Demand more income elastic d) Supply more income elastic Question 6 In monopolistic competition if firms are making abnormal profit other firms will enter and: a) The marginal cost will shift outwards b) The demand curve will shift inwards c) The average cost will shift downwards d) The average variable cost will increase Question 7 In Porter's five forces model conditions are more favourable for firms within an industry if: a) Buyer power is high b) Supplier power is high c) Entry threat is low d) Substitute threat is high Question 8 If a firm takes over a competitor then, according to Porter's 5 forces model: a) Buyer power is higher b) Supplier power is higher c) Substitute threat is higher d) Rivalry is lower Question 9 In marketing "USP" stands for: a) Unique Selling Proposition b) Underlying Sales Pitch c) Unit Sales Point d) Under Sales Procedure Question 10 In monopolistic competition: a) There are few sellers b) There are few buyers c) There is one seller d) There are many sellers