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In monopolistically competitive industries economic profits are competed

02/10/2021 Client: muhammad11 Deadline: 2 Day

1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to the point where marginal cost equals marginal 12. revenue. d. can enforce price arrangements vigorously in court. sell products that are identical. e. 13. Which of the following is true for a profit-maximizing firm operating in a competitive market, monopolistic competition, and monopoly? a. Firms earn positive economic profits in the long run. Firms earn zero economic profits in the long run. Profits are maximized when marginal cost equals marginal revenue. d. c. Price equals marginal revenue. Entry into the industry is impossible. e. 14. Profit-maximizing, monopolistically competitive firms a. consider the actions of their competitors when determining price. b. c. consider the actions only of the price leader in their market when determining price consider only marginal cost and marginal revenue, which determine the level of output- and the level of output determines price. consider only average total cost and average variable cost, which determine the level of d. output and the level of output determines price. take their price from the industry price, as do perfectly competitive firms. e. Entry of new firms will continue in a monopolistically competitive industry until 15. d. e. economic profit equals 0 (zero). marginal cost equals 0 (zero). a. economic profit is negative. b. marginal revenue equals 0 (zero). marginal revenue equals marginal cost c. The entry of new firms into a monopolistically competitive industry causes the a. b. 16. market demand curve to shift right. market demand curve to shift left. existing firms' demand curve to shift right. c. d. existing firms' demand curve to shift left market supply curve to shift left. e. The difference between price and marginal cost is a. marginal revenue. b. per-unit profit. c. average total revenue. d. markup e. nothing in the long run; they must be the same. 17. Both perfectly competitive and monopolistically competitive industries ave many firms, in fact so many 18. that, in the long run

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