Which of the following statements is correct concerning a typical firm operating under conditions of monopolistic competition in the long run? Select one: O a. It operates on the rising portion of its average cost curve because of excess capacity. b. Excess capacity is lowered as demand becomes less elastic. c. The greater the product differentiation the lower will be the amount of excess capacity. d. None of the choices are correct. O O O If the marginal product is declining whi the foll

. Which market condition (Monopoly, Perfect Competition, Duopoly, or monopolistic competition) is good for customers and why? Illustrate your choice with an appropriate scenario

Question 4 All of these are characteristic of monopolistic competition, EXCEPT: O A. free entry and exit. O B. barriers to entry. OC. product differentiation. OD. price maker.

Exhibit 10.5 Price 3.25 3.00 2.50 0 700 1,000 MC MR ATC D = AR Quantity Exhibit 10.5 shows the demand, marginal revenue, and cost curves for a monopolistically competitive firm. At the profit-maximizing (or loss-minimizing) output and price, the firm would O a. have to expand to stay in business in the long run. O b. be better off shutting down, since total revenue does not cover fixed costs. O c. be experiencing an economic loss. O d. be earning an economic profit. O e. be earning zero economic profit.

What issues do the online businesses face?  How are they similar to offline competition?  How are these issues resolved (market v. nonmarket) in the online and offline business? Use the theory fo the 4 Is. Issues are understood as moral concerns, consequences, justice, and rights at stake which can be resolved by either market or non-market action.

Fill in the blank and answer in 5-6 sentence only

The firm in the figure below is in monopolistic competition. It will set a price equal to MC ATC MR D 0 10 20 30 40 50 60 Quantity (units per day) O a. $1. O b. $3. O c. more than $3. O d. $2. Price and costs (dollars per unit)

Refer to Figure 17-5. Efficient scale is reached O a. at 100 units. O b. beyond 133.33 units. O c. at 133.33 units. O d. between 100 and 133.33 units. 13 Figure 17-5 The figure is drawn for a monopolistically competitive firm. PRICE MC 140 123.33 ATC Demand 90 56.67 100 133.33 QUANTITY MR

Which of the following market types has all firms selling products so identical that buyers do not care from which firm they buy? Select one: O a. monopolistic competition O b. oligopoly O c. monopoly O d. perfect competition

a. Compared to pure monopoly and pure competition, monopolistically competitive industries O might have economic profits, they will diminish as competitors enter, and there will be productive inefficiency. O will have economic profits, they will remain constant as competitors enter, and there will be productive efficiency. O will have economic profits, they will diminish constant as competitors enter, and there will be productive efficiency. O might have economic profits, they will remain constant as competitors enter, and there will be productive efficiency.