Microeconomics #9

Refer to Table 16-7. If the firm has a constant marginal cost of $7 per unit, how many units should the firm produce to maximize profit?

3 units

Refer to Table 16-6. What is the profit-maximizing output for Beatrice's Birthday Cakes?

4 cakes

Refer to Figure 16-8. Panel (d) illustrates the change that would occur if existing firms faced

new entrants in the market

Refer to Figure 16-5. Which of the graphs depicts a short-run equilibrium that will encourage the exit of some firms from a monopolistically competitive industry?

panel b

if there are many firms participating in a market, the market is either

perfectly competitive or monopolistically competitive

A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?

price exceeds marginal cost

Refer to Scenario 16-6. As a result of the new Ike's Ice Cream parlor, consumers living in and visiting Mayville are likely to experience a

product-variety externality, which benefits consumers