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

Figure 13-6 -Assuming that the total market size remains constant, a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing in the long run because

Figure 13-9 -Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is minimizing its losses?

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

Which of the following is true of a typical firm in a monopolistically competitive industry?

A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers.

If a firm has excess capacity, it means

Figure 13-6 -A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except

Is a monopolistically competitive firm allocatively efficient?

For a downward-sloping demand curve, marginal revenue decreases as quantity sold increases.

Which of the following is not an example of 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?

Figure 13-3 -Refer to Figure 13-3. What is the marginal revenue of the sixth unit of output?

A monopolistically competitive firm can convince buyers that its product has value by differentiating its product to suit consumers' preferences.

Figure 13-17 -Refer to Figure 13-17. What is the allocatively efficient output for the firm represented in the diagram?

Which of the following statements is true about marginal revenue?

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?

One reason why the coffeehouse market is competitive is that

Which of the following is a disadvantage of trademarking a firm's product?

A monopolistically competitive market is described as one in which there are

If the demand curve for a firm is downward sloping, its marginal revenue curve