A monopolistically competitive firm has power to set

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10) A monopolistically competitive firm has ____ power to set the price of its product because ____. A) no; there are no barriers to entry B) some; there are barriers to entry C) no; of product differentiation D) some; of product differentiation 11) In the long run, a monopolistically competitive firm’s price equals 12) A firm might be tempted to cheat on a collusive price-fixing agreement by setting a 13) Expenditures on advertising ____. 14) Suppose a monopolistically competitive firm is producing 1000 units of output and has total revenues of $500,000. If this is a long run equilibrium, then it must be the case that A) marginal cost is $500 B) minimum average total cost is $500 C) price is $500 D) all of the above 2
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Price (dollar s per movie ) Quantity demanded, weekend (movies per week) Quantity demanded, weekday (movies per week) 18 0 0 15 100 0 12 200 0 9 300 100 6 400 200 3 500 300
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