Question 4

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Question 1 Which of the following describes the relative positions of the demand curve and the  average total cost ( ATC ) curve of a monopolistically competitive firm that earns a profit  in the short run? In the short run, the firm's ATC curve will cross the demand curve at the profit maximizing level of output. The demand curve will be tangent to the ATC curve in the long run. In the short run, the firm's demand curve will lie above its ATC curve. The demand curve will be tangent to the ATC curve in the long run. In the short run, the firm's demand curve will lie below its ATC curve. The demand curve will be tangent to the ATC curve in the long run. In the short run, the firm's demand curve will cross its ATC curve at the ATC curve's lowest point. The demand curve will be above the ATC curve in the long run.
Question 2 Figure 13-7 Refer to Figure 13-7.  What is the profit maximizing output level?
Question 3 Figure 13-5 Refer to Figure 13-5.  Which of the graphs in the figure depicts a monopolistically  competitive firm that is economics profits equal to zero?
Question 4
Which of the following is true for a monopolistically competitive firm in long-run  equilibrium? M = = M
Question 5 If firms in a monopolistically competitive market are earning economic profits, which of  the following scenarios best reflects the change a representative firm experiences as  the market adjusts to its long-run equilibrium? Demand increases and becomes less elastic. Demand decreases and becomes less elastic. Demand increases and becomes more elastic. Demand decreases and becomes more elastic.
Question 6 Figure 13-1 Refer to Figure 13-1.  What is the marginal revenue of the sixth unit of output?
Question 7 Which of the following describes a difference between the marginal revenue and  demand curves of a perfectly competitive firm and a monopolistically competitive firm?
competitive firm lies below its demand curve. The perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies below its demand curve. The perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies above its demand curve. The marginal revenue curve of a monopolistically competitive firm lies below its demand curve; the marginal revenue curve of a perfectly competitive firm lies above its demand curve.

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