Question :
Figure 16-2
This figure depicts a situation in a monopolistically competitive
Figure 16-2
This figure depicts a situation in a monopolistically competitive market.
56. Refer to Figure 16-2. How much profit will the monopolistically competitive firm earn in this situation?
|
a. |
a $10 profit |
|
b. |
a $200 profit |
|
c. |
a $400 profit |
|
d. |
No profit, since monopolistically competitive firms never earn economic profit. |
57. Refer to Figure 16-2. How much output will the monopolistically competitive firm produce in this situation?
|
a. |
20 units |
|
b. |
25 units |
|
c. |
40 units |
|
d. |
80 units |
Figure 16-3
58. Refer to Figure 16-3. The firm in this figure is monopolistically competitive. It illustrates
|
a. |
the shut-down case. |
|
b. |
a long-run economic profit. |
|
c. |
a short-run economic profit. |
|
d. |
a short-run loss. |
59. Refer to Figure 16-3. At the profit-maximizing, or loss-minimizing, output level, the firm in this figure has total costs of approximately
|
a. |
$2,000. |
|
b. |
$3,000. |
|
c. |
$4,000. |
|
d. |
$5,000. |
60. Refer to Figure 16-3. Assume the firm in the figure is currently producing 8 units of output and charging $400. The firm
|
a. |
will increase its profits if it raises its price and reduces its production level. |
|
b. |
will increase its profits if it lowers its price and expands its production level. |
|
c. |
is maximizing profits. |
|
d. |
will increase its profits if it raises its prices and expands its production level. |
