Ch 13 Connect

Answer the question based on the demand and cost schedules for a monopolistically competitive firm given in the table below. Refer to the above table. At the profit-maximizing level of output, marginal revenue is:

$4

The graph depicts a monopolistically competitive firm. Refer to the above graph. At the profit-maximizing level of short-run output, this monopolistically competitive firm will be making a profit of:

$525

The graph depicts a monopolistically competitive firm. Refer to the above graph. In the short run, this monopolistically competitive firm will set price at:

$65 and produce 35 units of output

Answer the question based on the demand and cost schedules for a monopolistically competitive firm given in the table below. Refer to the above table. What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?

+$20

Answer the question based on the demand and cost schedules for a monopolistically competitive firm given in the table below. Refer to the above table. What output quantity will the monopolistically competitive firm produce to maximize profits?

5

Monopolistically competitive firms are similar to monopolies in that they have:

Marginal revenues that are less than price

A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.50, price is $4.00, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating:

With a loss

A monopolistically competitive industry is like a purely competitive industry in that:

Neither industry has significant barriers to entry

The goal of product differentiation and advertising in monopolistic competition is to make:

Price less of a factor and product differences more of a factor in consumer purchases

Monopolistic competition is characterized by firms:

Producing differentiated products