Figure Monopolistic Competition II The accompanying figure shows the demand

Figure monopolistic competition ii the accompanying

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4. (Figure: Monopolistic Competition II) The accompanying figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Pat's Pizza Parlor, a monopolistic competitor in the food-to-go industry. The optimal level of output for Pat's Pizza Parlor is ________ and the profit-maximizing price is ________. A) 350; $3.50 B) 350; $7.00 C) 590; $5.60 D) 500; $5.50 5. (Figure: Monopolistic Competition II) The accompanying figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Pat's Pizza Parlor, a monopolistic competitor in the food-to-go industry. When Pat's Pizza Parlor maximizes profit, profit will be: 6. (Figure: Monopolistic Competition II) The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Pat's Pizza Parlor, a monopolistic competitor in the food-to-go industry. In the long run, the demand curve facing Pat's Pizza Parlor will shift to the ________ as its competitors ________ the market.
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Chapter 16 Page 3 Use the following to answer question 8: Figure: Monopolistic Competition VI 8. (Figure: Monopolistic Competition VI) In the figure, firms, in the long run, will: Use the following to answer question 9: Figure: The Market for Gas Stations
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Chapter 16 Page 4 9. (Figure: The Market for Gas Stations) The figure shows curves facing a typical gas station in a large town. Assume that the market is characterized by many firms, differentiated products, easy entry, and easy exit. If the gas station here is typical of others in the community, prices charged by firms in the market are likely to: A) fall in the long run. B) rise in the long run. C) remain unchanged. D) rise dramatically in the long run.
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Chapter 16 Page 5 Answer Key1. B Topic: The Meaning of Monopolistic Competition 2. D Topic: The Meaning of Monopolistic Competition 3. C Topic: Understanding Monopolistic Competition 4. B Topic: Understanding Monopolistic Competition 5. B Topic: Understanding Monopolistic Competition 6. C Topic: Understanding Monopolistic Competition 8. B Topic: Understanding Monopolistic Competition 9. A Topic: Understanding Monopolistic Competition
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