II. MODIFIED TRUE OR FALSE Directions: Read the given statements and write T if they are TRUE. Otherwise, write F and give the word or phrase that correctly replaces the underlined part. 11. Change in output of a single firm will not perceptibly affect market price of the good. 12. Market structure refers to the competitive environment in which buyers and sellers operate. 13. In an imperfect competition, no single buyer can influence the price since he/she purchases only a small amount. 14. In a monopolistic competition, market price and quantity output are determined exclusively by forces of demand and supply. 15. A monopoly can exist when there are barriers to entry that may cause other firms to stay out of the market instead of entering and competing with firms already there. 16. In a monopolistic competition, there is free entry and exit in the market that enables the existence of many sellers. 17. In an oligopoly, the firm can either sell more by charging a lower price or it can even raise its price without losing all of its customers because it has the capacity of developing loyalty among them. 18. The absence of competition causes the customers to suffer from poor quality of the good and the poor service delivered by the monopolist. 19. In a perfect competition, no single buyer can influence the price since he/she purchases only a small amount. Buyer cannot extract quantity discounts and credit terms. 20. Monopolistic competition is an example of a perfectly competitive market