10) Because the monopolistically competitive firm faces a ________ demand curve for its product, it ________ the price of its output. A) horizontal; cannot influence B) downward-sloping; cannot influence C) downward-sloping; can influence D) horizontal; can influence
11) Is a monopolistically competitive firm allocatively efficient?
12) A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
13) The reason that the "fast-casual" restaurant market is monopolistically competitive rather than perfectly competitive is because
14) Long-run equilibrium under monopolistic competition is similar to that under perfect competition in that A) firms produce at the minimum point of their average cost curves.