Monopolies and Monopolistic Competitive Firms

One difference between perfect competition and monopolistic competition is that

• a perfectly competitive industry has fewer firms

• monopolistic competition has barriers to entry.

• firms in monopolistic competition face a downward-sloping demand curve.

• in perfect competition, firms produce slightly differentiated products.

A monopolistically competitive industry has

• a small number of large firms

• differentiated products.

• significant barriers to entry.

• mutually dependent firms.

One important difference between monopoly and monopolistic competition is the

• greater restriction of output in monopolistic competition.

• point there are no barriers to entry in monopolistic competition.

• point that the marginal revenue and demand curves are the same for a monopoly.

• slope of the demand curve that the firms faces.

Firms in monopolistic competition always will

• produce at the minimum average total cost.

• set their price equal to their marginal cost.

• earn an economic profit.

• set their price above their marginal cost.

In monopolistic competition, in the short run a firm maximizes its profit by selecting an output at which marginal cost equals

• price.

• zero.

• marginal revenue.

• average total cost.

In the above figure, if the firm is in monopolistic competition, it will produce

• 100 units.

• 40 units

• 60 units.

• between 60 and 80 units.

In the above figure, the monopolistically competitive firm earns an economic profit of

• between $50.01 and $100 per day.

• greater than $100.01 per day.

• $0.

• between $0 and $50 per day.

In the above figure, the monopolistically competitive will experience what change into the long run?

• a right shift of it's demand curve.

• a left shift of it's demand curve.

• a right shift of it's supply curve.

• a left shift of it's supply curve.

This illustration is an example of a

• monopolistic firm earning a profit.

• monopolistic firm earning zero economic profit.

• monopolistic firm earning a loss.

What will happen in the market in the long run according to this graph?

• the monopolistic firm's supply curve will shift right.

• the monopolistic firm's supply curve will shift left.

• the market supply curve will shift left.

• The market supply curve will shift right.