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EQ 11 2010 answers - (b There are few sellers(c The food...

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EQ #11 – AGEC 105 – March 31, 2010 This graph pertains to a firm labeled as a monopolistic competitor. (1pt) 1. If the demand curve were to intersect the quantity axis, the quantity demanded would be equal to _7000________ units. (2pts) 2. Which of the following is (are) true about monopolistic competition? List all that apply. Answers (a), (c) (a) There is product differentiation.
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Unformatted text preview: (b) There are few sellers. (c) The food retailing industry is an example of this market structure. (d) No firm can influence market prices. (2pts) 3. According to the graph, how much should this monopolistic competitor produce and what should be the price charged? Q=3200, p=$3.25 P $3.25 $3.00 $2.75 3200 3400 3500 Q MR D MC...
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