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final_B - 1 Figure 10-10 shows the long-run market demand...

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1. Figure 10-10 shows the long-run market demand curve and the cost structure for a typical monopolistic competitor. The minimum efficient scale (MES) is a. 0 b. 200 units c. 400 units d. 800 units e. 1,200 units 2. Figure 10-10 illustrates the long-run market demand curve and a typical firm's costs. How many firms are likely to exist in the long run in this industry? 3. Figure 10-10 represents the costs of a typical firm along with the market demand curve. In the long run, this industry is most likely going to be a 4. Figure 10-13 shows the payoff matrix for the only two auto dealerships in a community, Jim's Autos and Tim's Autos. The matrix shows the profits that each firm would earn from choosing either a low price or a high price. In this example,
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5. Figure 10-13 shows the payoff matrix for two large auto dealerships, Jim's Autos and Tim's Autos. These intense rivals are the largest automobile dealers in the market by far. The matrix shows the profits that each firm would earn from choosing either a low price or a high price. Jim's dominant strategy is to a. always charge a low price b. always charge a high price c. charge a high price if Tim charges a low price d. charge a low price only when Tim charges a low price e. follow the price leadership of Tim's Autos 6. Figure 10-13 shows the payoff matrix for two large auto dealerships, Jim's Autos and Tim's Autos. The matrix shows the profits that each firm would earn from choosing either a low price or a high price. The equilibrium level of profit for Jim's Autos would be 7. What characteristic is common to perfect competition, monopolistic competition, and monopoly?
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