Question

1. Firms in perfect competition enjoy full market power.T/F

2. Firms in Oligopoly are protected from entry because barriers to entry exist.T/F

3...Monopolized industries do not have strong barriers to entryT/F

4. There is a big role for advertising for firms in an industry described as monopolistic competition.T/F

5.	Perfectly competitive firms sell goods that are similar, but not quite identical, to the other products sold by competitors. T/F

Answer 1

a) "False"

Ina perfect market the firm didn't have any market power. Even the price in the market is decided by the supply and demand forces and the firm has to take the market price as its selling price.

b) "True"

In an oligopoly market, some barriers to entry exist which is in the form of initials capital or know-how of the industry etc.

c) "False"

Monopolised industry have the highest barriers to entry.

d) "True"

In a monopolistic firm non-price competition is important and hence advertisement becomes important.

e) "False"

In a perfect market condition the goods, they are selling is homogenous and identical.