: These HW questions are designed to help broaden your understanding of Economics as well as prepare you for the exam.
You are expected to show all work when performing calculations as well as drawing out any required graphs or tables.
_____1. A monopolistically competitive firm will
A) charge the same price as its competitors do.
B) always produce at the minimum efficient scale of production.
C) have some control over its price because its product is differentiated.
D) produce an output level that is productively and allocatively efficient.
_____2. For a monopolistically competitive firm, marginal revenue
_____3. When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the