x
Info
x
Warning
x
Danger
 / 
 / 
 / 
11) Refer to Figure 14.2.3. Assume this firm faces demand

Question : 11) Refer to Figure 14.2.3. Assume this firm faces demand : 1418018

 

 

11) Refer to Figure 14.2.3. Assume this firm faces demand curve D1. At the profit-maximizing output level, the firm

A) incurs an economic loss.

B) makes zero economic profit.

C) makes an economic profit.

D) makes less economic profit than that earned by firms in perfect competition.

E) makes an unknown economic profit that is impossible to determine without information concerning the price charged by the rival firms.

 

12) Refer to Figure 14.2.3. Assume this firm faces demand curve D1. If this firm in monopolistic competition is maximizing profit,

A) there will be entry of rival firms into the industry.

B) rival firms will exit the industry.

C) the market is efficient.

D) this firm will exit the industry in the long run.

E) its profit will rise over time.

 

13) Refer to Figure 14.2.3. Assume this firm faces demand curve D1. If the firm produced the efficient quantity, it would produce

A) 100 units.

B) 220 units.

C) 200 units.

D) 250 units.

E) 140 units.

 

14) Refer to Figure 14.2.3. Assume this firm faces demand curve D2. To maximize economic profit, this firm in monopolistic competition will charge a price of ________ and produce an output of ________ units.

A) $40; 100

B) $90; 220

C) $80; 200

D) $55; 140

E) $70; 100

15) Refer to Figure 14.2.3. Assume this firm faces demand curve D2. At the profit-maximizing output level, the firm

A) incurs an economic loss.

B) makes zero economic profit.

C) makes an economic profit.

D) is not in a long-run equilibrium.

E) is producing at its efficient scale.

 

16) Refer to Figure 14.2.3. Assume this firm faces demand curve D2. If this firm in monopolistic competition is maximizing economic profit,

A) there will be entry of rival firms into the industry.

B) rival firms will exit the industry.

C) it is producing the efficient quantity.

D) the number of firms in the industry will remain constant.

E) economic profit will fall over time.

 

17) Refer to Figure 14.2.3. Assume this firm faces demand curve D2. When the firm produces the efficient quantity, it produces

A) 100 units.

B) 140 units.

C) 200 units.

D) 220 units.

E) 250 units.

 

18) Refer to Figure 14.2.3. Assume this firm faces demand curve D2. If the firm produces the efficient quantity, it

A) makes an economic profit.

B) makes zero economic profit.

C) incurs an economic loss.

D) is in a long-run equilibrium.

E) will face competition from new firms entering the industry.

19) In the long run, all firms in an industry that is monopolistically competitive

A) produce at their efficient scale.

B) set price equal to marginal cost.

C) incur an economic profit.

D) make an economic profit.

E) make zero economic profit.

 

20) In the short-run, the similarity between a monopolist and a monopolistically competitive firm is that

A) they both make the same decisions about the level of output and output price.

B) they both face an upward-sloping supply curve for their products.

C) they both try to maximize their total revenues.

D) they both try to minimize their average fixed costs.

E) they set the price such that marginal revenue equals average total cost.

 

 

Solution
5 (1 Ratings )

Solved
Economics 9 Months Ago 33 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
119145 Economics Questions Answered!
Post a Question