Exam 13: Monopolistic Competition: the Competitive Model in a

Suppose James and Katherine are successful in establishing a profitable market for their "ghost restaurants" in what is a monopolistically competitive industry.In the long run, James and Katherine will most likely find it ________ to remain profitable as they face ________ competition in the "ghost restaurant" market.

Which of the following is the best example of a firm that competes in a monopolistically competitive market?

Figure 13-13 -Refer to Figure 13-13.If the diagram represents a typical firm in the market, what is likely to happen in the long run?

One of the assumptions of monopolistic competition is that firms produce differentiated products.What does this assumption imply about the demand curve facing a representative firm?

In monopolistic competition, if a firm produces a highly desirable product relative to its competitors, the firm will be able to raise its price without losing any customers.

In monopolistic competition there is/are

When a monopolistically competitive firm cuts its price to increase its sales, it experiences a loss in revenue due to the

Figure 13-9 -Refer to Figure 13-9.Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?

Which of the following describes a difference between the marginal revenue and demand curves of a perfectly competitive firm and a monopolistically competitive firm?

If a monopolistically competitive firm lowers its price and, as a result, its total revenue decreases then

Table 13-5 Table 13-5 shows the demand and cost data facing a monopolistically competitive producer of canvas bags. -Refer to Table 13-5.At the profit-maximizing or loss-minimizing output level,

Table 13-4 Table 13-4 lists estimated revenues and costs (per week)for plastic vials (100 vials per box)for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories. -Refer to Table 13-4.Victoria's profit-maximizing quantity (Q)and price (P)are

Monopolistically competitive firms face a perfectly elastic demand curve.

Figure 13-4 Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-4.Should the firm represented in the diagram continue to stay in business despite its losses?

When new firms are encouraged to enter a monopolistically competitive market,

When a monopolistically competitive firm lowers it price one bad thing happens to the firm.What is this "one bad thing" called?

Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?

Figure 13-7 Figure 13-7 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market. -Refer to Figure 13-7.Which of the following statements describes the best course of action for the firm depicted in the diagram?

Suppose Jason owns a small pastry shop.Jason wants to maximize his profit, and thinking back to the microeconomics class he took in college, he decides he needs to produce a quantity of pastries which will minimize his average total cost.Will Jason's strategy necessarily maximize profits for his pastry shop?

For a monopolistically competitive firm, marginal revenue