3. Monopolistically competitive firms are most likely to have profits: A. That are higher than competitive firms' profit in the long run. B. Higher in the long run than in the short run. C. Zero in the long run D. Equal to the profit of a monopolist.

The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 140 120 100 80 60 40 20 0 10 20 30 40 Quantity per period 50 60 D MC Tools marginal revel b. What are the values of the profit-maximizing output and price? Output: Price: $ c. What are the values of output, price and total revenue when the firm's total revenue is maximized? Output: Price: $ Total revenue: $

As long as _________ exist, a monopolist can earn positive profits in the long run A.Entry barriers B.Maximum prices C.Brands

In an monopolistic competitive industry, firms can earn positive economic profits Select one: a. In the short run and in the long run. b. In the short run but not in the long run. c. Both in the short run and long run as he does not lose money. d. In the long run but not in the short run.

3. How does quantity and price for a monopolist compare to quantity and price for a perfectly competitive firm?

Which two curves in a monopolistically competitive market in the long run will be equal to each other due to firm entry and exit? a. marginal revenue curve and its total cost curve. b. marginal revenue curve and its average total cost curve. c. demand curve and its total cost curve. d. demand curve and its average total cost curve.

Q9

3 Of 16 a. A monopolistic competitor, much like a firm in perfect b. Advertising can play a role as an indirect signal of competition, sells its product at a point product quality to customers. where the price is equal to the marginal cost. true false true O false c. Monopolistically competitive industries are more likely d. In the long run, monopolistic competitors make a to make use of advertising to create products that catch similar amount of profit to monopolists, since, in both on in mainstream popularity than industries in perfect cases, the firm's demand curves are downward sloping, competition. and at the profit maximizing point, the marginal cost is true false equal to the marginal revenue. O true O false e. In the short term, a monopolistic competitor will make a profit if the demand curve is above the average total cost curve at some point. true false

In monopolistic competition, a firm has some ability to affect the price for its product because of Select one a. economic profits. b.easy entry and exit. C. many competitors product differentlation.

Business Essentials TRU RED R N H Q5. The figure below shows a monopolistically competitive market for a fictional brand of shampoo called SqueakyKleen. a. What is the price and quantity of SqueakyKleen in the short run? b. What is the efficient price and quantity of Squeaky Kleen? c. Draw the deadweight loss? MC, MR, ATC and Price MC 3 2.5 25 1.5 ATC 0.5 MR D 0 20 40 60 80 100 120 Bottles of shampoo (millions)