monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.
19) Advertising can impede economic efficiency when it: A. increases entry barriers.
B. reduces brand loyalty. C. enables firms to achieve substantial economies of scale.
D. increases consumer awareness of substitute products.
20) Nonprice competition refers to: A. advertising, product promotion, and
changes in the real or perceived characteristics of a product. B. competition
between products of different industries, for example, competition between
aluminum and steel in the manufacture of automobile parts. C. reductions in
production costs that are not reflected in price reductions. D. price increases by a
firm that are ignored by its rivals.
21) Which of the following is not a possible source of natural monopoly? A. greater
use of specialized inputs B. large-scale network effects C. rentseeking behavior D.
simultaneous consumption