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quiz8 - QUIZ 8 VERSION 1 1 A monopolistically competitive...

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QUIZ 8 VERSION 1 1) A monopolistically competitive firm and a monopoly are similar because A) each firm has a large number of insignificant competitors. B) both firms will earn zero profits in the long run. C) both firms always operate at their point of minimum average total cost. D) both firms must behave strategically toward other firms in the industry. E) each firm sets price above marginal cost. 2) Unlike perfectly competitive and monopolistically competitive firms, oligopolists A) always make positive profits. B) always face only a small number of competing firms in their industry. C) earn zero profits in the long run. D) take account of the reactions of their competitors to their output decisions. E) operate where MR = MC . 3) Compared with perfect competition, monopolistic competition results in 4) Long-run equilibrium for a monopolistically competitive industry results in 5) In long-run equilibrium a monopolistically competitive industry operates where 6) Oligopolists make decisions after taking into account the expected reaction of their competitors. Oligopolists are exhibiting A) collusive behaviour. B) cooperative behaviour. C) strategic behaviour. D) non-rational behaviour. E) non-strategic behaviour. 7) A Nash equilibrium
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8) Characteristics of a monopolistic competitive market include
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