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# Pure price competition within some industry means that there must be: a great deal of advertising among competing firms no product differentiation...

1. Pure price competition within some industry means that there must be: a. a great deal of advertising among competing firms b. no product differentiation c. free entry and exit from the industry d. zero economic profit in the short-run Select ALL that apply 2. The sales of firms within a monopolistically competitive industry can depend upon: a. price b. advertising for substitute products c. intangibles like warrantees or return policies 3. Variable cost can be defined as  a. (average variable cost x quantity) b. (total cost -fixed cost) c. (fixed cost -total cost) d. (average cost - average fixed cost) 4. Suppose the monopolistic competitor faces costs and demand as depicted in the table below. Given the goal of maximizing profit, what level of output would the firm choose? Q =  1 2 3 4 5 6 TR =  10 18 24 28 30 30 TC =  2 7 12 20 30 42 a. 2 b. 1 c. 6 d. 5 e. 4 f. 3 5. Given the level of demand below, what is the marginal revenue of the fifth unit of production? Price Quantity 25 1 22 2 18 3 15 4 12 5 a. \$12 b. \$60 c. \$0 d. \$48
6. Given the level of demand below, what is total revenue when the price is 18? Price Quantity 25 1 22 2 18 3 15 4 12 5 a. between \$26-\$49 b. \$0 c. more than 50 d. between \$1-\$125 Choose ALL that apply 7. Total revenue equals ________ x ________. a. demand, marginal revenue b. price, quantity c. average revenue, quantity 8. Given the level of demand in the graph  below, if Q = 10, total revenue = a. 0 b. 100 c. 60 d. 50 11. If the firm is producing at a quantity of output where marginal revenue is less than marginal  cost, then,
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1.
a.
b.
c.
d. Pure price competition within some industry means that there must be:
a great deal of advertising among competing firms
no product differentiation
free entry and exit from the...

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1.
a.
b.
c.
d. Pure price competition within some industry means that there must be:
a great deal of advertising among competing firms
no product differentiation
free entry and exit from the...

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