Refer to Which of the following statements is true A D a

Refer to which of the following statements is true a

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108)Refer to Figure 13-11.Which of the following statements is true?A)Darepresents the long-run demand curve facing a monopolistic competitor in aconstant-cost industry whileDbdepicts the long-run demand curve in an increasing-costindustry.B)Darepresents the long-run demand curve facing a perfect competitor whileDbdepicts thelong-run demand curve facing a monopolistic competitor.C)Darepresents the long-run demand curve facing a monopolistic competitor in aconstant-cost industry whileDbdepicts the demand curve in the short run.D)Darepresents the long-run supply curve in a perfectly competitive, constant-cost industrywhileDbdepicts the long-run demand curve facing a monopolistic competitor in adecreasing-cost industry.Answer: B108)Diff: 3Page Ref: 443-444/443-444Topic: Monopolistic Competition in the Long RunLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills109)Refer to Figure 13-11.The diagram demonstrates thata.C) in the long run, the monopolistic competitor produces the minimum-cost output level,Qa,but in the short run its output ofQbis not cost minimizing.D) it is possible for a monopolistic competitor to produce the productively efficient output level,Qa,if it is willing to lower its price fromPbtoPa.109)Diff: 3Page Ref: 443-444/443-444Topic: Monopolistic Competition in the Long RunLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills37
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TRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.110) Consumers in monopolistically competitive markets face a tradeoff between paying prices greaterthan marginal costs and purchasing products that are more closely suited to their tastes.110)Answer:TrueFalseDiff: 2Page Ref: 443-444/443-444Topic: Comparing Perfect Competition and Monopolistic CompetitionLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking
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