Quiz_132 - 79 ,thefirm A B C D 79 Answer

Quiz_132 - 79 ,thefirm A B C D 79 Answer

  • New York University
  • MICRO 15
  • Test Prep
  • zhangyu132
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79) If a monopolistically competitive firm breaks even, the firmA) should expand production.B) is earning an accounting profit and will have to pay taxes on that profit.C) should advertise its product to stimulate demand.D) is earning zero accounting and zero economic profit.Answer: B79)Diff: 2Page Ref: 438/438Topic: Long-Run EquilibriumLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective ThinkingFigure 13-7Figure 13-7 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designerwatches.80)Refer to Figure 13-7.If the diagram represents a typical firm in the designer watch market, what islikely to happen in the long run?80)Diff: 2Page Ref: 438-439/438-439Topic: Monopolistic Competition in the Long RunLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills27
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