问题


There is a single choice question about high school microeconomics. Answer the question by replying A, B, C or D.
Question: Monopolistic competition is often characterized by
A. strong barriers to entry.
B. a long-run price that exceeds average total cost.
C. a price that exceeds average variable cost, causing excess capacity.
D. many resources devoted to advertising.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

D. many resources devoted to advertising.
D
deepseekr1

The characteristics of monopolistic competition include product differentiation, many firms, free entry and exit, and significant advertising efforts. Here's the analysis of each option:

- **A. Strong barriers to entry**: Incorrect. Monopolistic competition has **low barriers to entry**, unlike monopolies or oligopolies.
- **B. Long-run price exceeding average total cost (ATC)**: Incorrect. In the long run, free entry drives economic profits to zero, so price equals ATC.
- **C. Price exceeds average variable cost (AVC), causing excess capacity**: Partially misleading. While price does exceed AVC (ensuring firms operate in the short run), excess capacity arises because firms produce below the efficient scale (minimum ATC), not directly due to price exceeding AVC.
- **D. Many resources devoted to advertising**: Correct. Advertising is a hallmark of monopolistic competition as firms differentiate their products through marketing.

**Answer: D**
D
gpto1 D D
GPT-4o D. many resources devoted to advertising. D
llama3.1-70B-Instruct

D
D
llama3.1-405B-Instruct

D. many resources devoted to advertising.
D
DeepSeek-Coder-V2 D D
Qwen2-72B-Instruct D. many resources devoted to advertising. D
baichuan4 D. many resources devoted to advertising. D
doubao D

In monopolistic competition, there are many firms, each with a differentiated product. Firms often engage in advertising to distinguish their products and attract customers. There are relatively low barriers to entry (not strong barriers as in A), and in the long run, price equals average total cost (not exceeds as in B). While price may exceed average variable cost, it is not the main characteristic of monopolistic competition. Advertising is a common feature, so D is the correct answer.
D
minimax D. many resources devoted to advertising. D
kimi C. a price that exceeds average variable cost, causing excess capacity. D
wenxinyiyan D

Explanation:
Monopolistic competition is a market structure where there are many sellers offering differentiated products. Because products are not perfect substitutes, firms have some control over their price, but not as much as in a monopoly.

A. strong barriers to entry - This is not a characteristic of monopolistic competition. In monopolistic competition, entry and exit are relatively easy, which means barriers to entry are low.

B. a long-run price that exceeds average total cost - In monopolistic competition, firms may earn supernormal profits in the short run, but in the long run, due to free entry and exit, profits are driven down to normal levels. This means that in the long run, price equals average total cost.

C. a price that exceeds average variable cost, causing excess capacity - This description is more closely associated with oligopoly, where firms may choose to produce at a level where price exceeds average variable cost but is less than average total cost, leading to excess capacity. In monopolistic competition, firms adjust their output in the long run to where price equals average total cost.

D. many resources devoted to advertising - This is a key characteristic of monopolistic competition. Because products are differentiated, firms use advertising and other marketing strategies to promote their unique products and attract customers. This helps them maintain some control over their price and market share.
D
zhipu D. many resources devoted to advertising.

Monopolistic competition is characterized by many firms selling similar but not identical products, and these firms often engage in significant advertising to differentiate their products and attract customers. This distinguishes it from perfect competition, where products are homogeneous and advertising is minimal.

Options A, B, and C do not accurately describe monopolistic competition:
- A: Monopolistic competition typically has low barriers to entry, unlike a monopoly.
- B: In the long run, firms in monopolistic competition earn zero economic profit, meaning the price equals the average total cost.
- C: While firms in monopolistic competition may operate with excess capacity, the key characteristic related to pricing is that the price exceeds the average variable cost but not necessarily causing excess capacity as a primary feature.

Therefore, D is the correct answer.
D
gpto1 D D