Multiple Choice
If the Average Total Cost curve of a firm in monopolistic competition happens to be above the demand curve, it means:
A) the firm will have to sell a lot in order to make a profit
B) the firm will have to sell at a very high price in order to make a profit
C) other firms are performing better in the market than the firm depicted in the diagram
D) that firms in that industry will be incurring losses in the short run
Correct Answer:

Verified
Correct Answer:
Verified
Q16: A _occurs in an industry where there
Q17: Which of the following statements is true,
Q18: As output increases in a monopoly, the
Q19: A monopoly is a _<br>A)price taker<br>B)price accepter<br>C)price
Q20: A major critique of advertising is that<br>A)it
Q22: The short-run supply curve of a firm
Q23: Which of the following is NOT a
Q24: Monopsony is a market with<br>A)one buyer<br>B)one seller<br>C)many
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Q26: Marginal revenue in a monopoly is:<br>A)always greater