27) A monopolistically competitive firm maximizing profits will produce at a price that is: A) equal to marginal revenue. B) greater than marginal cost. C) equal to marginal cost. D) less than marginal revenue. Answer:
B Diff: 2 Page Ref: 394 28) Which of the following is NOT a characteristic of long-run equilibrium in a monopolistically competitive market?
A Diff: 2 Page Ref: 401 29) A monopolistically competitive industry that earns economic profits in the short run will:
C Diff: 2 Page Ref: 396 30) Monopolistic competition has:
A Diff: 1 Page Ref: 390 31) Most gasoline stations usually have unused gasoline pumps which is evidence of: A) charging too high a price. B) excess capacity. C) a lack of advertising. D) marginal costs greater than marginal revenue. Answer:
B Diff: 2 Page Ref: 401 32) If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is: