eco

If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will

decrease

Refer to the long-run cost curve for a firm. If the firm produces output Q 1 at an average total cost of ATC 1, then the firm is

incurring X-inefficiency and is failing to realize all existing economies of scale

If columns 1 and 3 are this firm's demand schedule, maximum economic profit will be

$80

Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is

3.40 or less

At the profit-maximizing level of short-run output, this monopolistically competitive firm will be making a profit of

525

Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist sold 4 units, then total revenue would be

600

If the industry depicted in this graph were purely competitive, the output quantity would be

90

An exclusive legal right as sole producer for 20 years granted to an inventor of a product is called a

patent

A monopolistically competitive firm is producing at a short-run output level where average total cost is $10.00, marginal cost is $5.00, marginal revenue is $6.00, and price is $12.00. In the short run, the firm should

Increase the level of output

One major barrier to entry under pure monopoly arises from

ownership of essential resources

Which is the best example of price discrimination?

a telephone company charging lower rates to weekend users than weekday users

In the long run, a profit-maximizing monopolistically competitive firm sets it price

above marginal cost.

the herfindahl index

gives much greater weight to larger firms than to smaller firms in an industry

Under which of the following conditions would a profit-maximizing monopolist necessarily raise price?

if marginal cost was greater than marginal revenue

In long-run equilibrium, a monopolistically competitive producer achieves

neither productive efficiency nor allocative efficiency

Refer to the diagram. If this somehow was a costless product (that is, the total cost of any level of output was zero), the firm would maximize profits by

producing Q2 units and charging a price of P2.

One feature of pure monopoly is that the demand curve

slopes downward