Monopolistic competitors and perfect competitors are

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Managerial Economics
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Chapter 9 / Exercise 2
Managerial Economics
Froeb/McCann
Expert Verified
22.Monopolistic competitors and perfect competitors are alike in:a.facing horizontal demand curves.b.earning zero economic profit in the short run.c.earning zero economic profit in the long run.d.relying on advertising to attract buyers to their products.
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Managerial Economics
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Chapter 9 / Exercise 2
Managerial Economics
Froeb/McCann
Expert Verified
ANS: C
PTS:123.Monopolistic competition is characterized by which of the following attributes:i.Many sellersii.Product differentiationiii.Significant barriers to entry
PTS:124.Based on the graph below, what is the maximum amount of profit this firm could earn?
PTS:125.Based on the graph below, what would total revenue equal at the profit maximizing level of output?
PTS:126.Based on the graph below, what would total cost be at the profit maximizing level of output?a.$560b.$665c.$875d.$900ANS: C
PTS:127.When many sellers are involved in selling their products in a market, the market structure may be which of the following?i.perfect competitionii.monopolistic competitioniii.monopoly
PTS:128.When free entry is one of the attributes of a market structure, economic profits are:
PTS:129.Characteristics shared by monopolistically and perfectly competitive markets alike include:
PTS:130.Characteristics shared by monopolistically competitive and monopoly markets alike include:a.strategic interactions among sellers.
b.many sellers.c.firms facing a downward-sloping demand curve.d.insignificant barriers to entry.ANS: C
PTS:131.In monopolistically competitive market structure, because each good sold in the market is ____, each firm is considered a ____.
PTS:132.A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm:
PTS:1

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