Exam 13: Monopolistic Competition: the Competitive Model in a

After selling 1,000 three-ring binders, Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost.From this we can conclude that

Figure 13-18 -Refer to Figure 13-18.Which of the following statements is true?

In theory, in the long run, monopolistically competitive firms earn zero profits.However, in reality there are some ways by which a firm can avoid losing profits.Which of the following is one such way?

Although advertising raises the price of a monopolistic competitor's product, it does confer a benefit to consumers.Which of the following is a benefit to consumers?

A monopolistically competitive firm that earns economic profits in the short run will face a more elastic demand curve in the long run.

Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?

Figure 13-11 -Refer to Figure 13-11.What is the monopolistic competitor's profit-maximizing price?

Economists agree that a monopolistically competitive market structure

What is the difference between the terms "marketing" and "advertising"?

If firms in a monopolistically competitive industry are making profits in the short run, then

Which of the following can a firm use to defend a successful product's brand name?

Which of the following statements is true about advertising by a monopolistically competitive firm?

A firm cannot control all of the factors that allow it to make economic profits.Which of the following is an example of an uncontrollable factor?

What is the trade-off that consumers face when buying the product of a monopolistically competitive firm?

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.Based on the data in the table, which of the following statements is true?

Table 13-3 Table 13-3 shows the demand and cost schedules for a monopolistically competitive firm. -Refer to Table 13-3.If this firm continues to produce, what is likely to happen to the product's price in the long run?

In the United States, the average person mostly patronizes firms that operate in

A monopolistically competitive firm chooses

What effect does the entry of new firms in a monopolistically competitive market have on the economic profits of existing firms in the market? How might existing firms attempt to counteract this effect?

Figure 13-8 Figure 13-8 shows cost and demand curves for a monopolistically competitive producer of iced tea. -Refer to Figure 13-8.Based on the diagram, one can conclude that