Exam 13: Monopolistic Competition: the Competitive Model in a More Realistic Setting

Figure 13-7 -Refer to Figure 13-7.If the diagram represents a typical firm in the market,what is likely to happen to its average cost of production in the long run?

Table 13-1 Table 13-1 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 university and private research laboratories. -Refer to Table 13-1.Based on the data in the table,which of the following statements is true?

Starbucks started out small in 1971,but by 1993 Starbucks was a national chain and had coffeehouses in 38 countries.A key to the company's success was the realization by executives that

Figure 13-4 Figure 13-4 shows cost and demand curves for a monopolistically competitive producer of iced-tea. -Refer to Figure 13-4.At the profit-maximizing output level the firm will

A monopolistically competitive firm that earns an accounting profit in the short run

Figure 13-1 -Refer to Figure 13-1.What is the marginal revenue of the sixth unit of output?

Monopolistically competitive firms have downward-sloping demand curves.In the long run,monopolistically competitive firms earn zero economic profits.These two characteristics imply that in the long run,

If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue,total cost is $1,674 and total revenue is $2,000,its average profit is

Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive market in that in both markets,firms

The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair.It sells 8 pairs of jeans per day at a price of $90 per pair.The marginal revenue of the eighth pair of jeans is

Both the perfectly competitive firm and the monopolistically competitive firm produce at the output where marginal revenue equals marginal cost (MR = MC)but only the perfectly competitive firm achieves allocative efficiency.Explain why this is the case.

In both monopolistically competitive and perfectly competitive industries

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

If Starbucks is successful at luring away competitors' customers with its chain of health and wellness stores,what will be the effect on Starbucks' demand and marginal revenue curves?

Figure 13-7 -Refer to Figure 13-7.What is the profit maximizing output level?

Firms use two marketing tools to differentiate their products.What are these two tools?

As customers switch from renting DVDs to downloading or streaming movies from the Internet,Netflix will likely find it

When a firm has been granted a trademark,which grants legal protection against other firms using the name of the product that has been granted the trademark,the firm

Monopolistically competitive firms can differentiate their products

Which of the following is not a characteristic of monopolistic competition?