For a monopolistic competitor: choose correct and exlain your choice a. P = ATC in long-run equilibrium. b. P > ATC in long-run equilibrium. c. P = MR in long-run equilibrium. d. P = MC in long-run equilibrium.

The monopolistic competitor differs from the competitive firm in that it: Select one: a. charges a price greater than the marginal cost; b. it has no demand curve. c. operates in an industry without free entry. d. can earn economic profit in the long run.

In what sense do monopolistically competitive firms have market power? Question 1Answer a.  Firms in the long run will earn zero economic profits b.  The demand curve that a typical firm faces is negatively sloped c. Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands d.  All of the answers are correct

A monopolistically competitive firm in a long-run equilibrium will likely produce which of the following?  A. a technically efficient amount of outputB. less than a technically efficient amount of output and less than an allocatively efficient amount of outputC. more than a technically efficient amount of output but less than an allocatively efficient amount of outputD. an allocatively efficient amount of production.E. less than a technically efficient amount of output and more than an allocatively efficient

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.

Which of the following are characteristics of monopolistic competition in the long run A. blocked entry into the market □ B. zero economic profit □ C. full efficiency □ D. lower production than competitive markets

A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economic profits. Which of the following must be true? Select one: a. ATC> P> MR = MC. b. ATC= P> MR = MC. c. ATC> P = MR = MC. d. ATC> P> MR > MC.

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.

Suppose new firms enter a monopolistically competitive market. What is the effect of new firms entering the market from the perspective of the firms that were already in the market? Question 11Answer a. Positive supply shock b. Positive demand shock c. No effect d. Negative supply shock e. Negative demand shock

3. A monopolistically competitive firm sells boots and has the following in the short run: Demand: P = 80 – 0.5Q %3D MR: MR = 80 – Q TC = 1.5Q? + 40 1.5Q + (40/Q) TC: АТC: MC: MC = 3Q %3D Find the firm's profit maximizing quantity and price. Find the firm's profit or loss. Show some work here: Quantity = Price = Profit or Loss = (circle one, and write the number)