The figure below shows the revenue and cost curves of a monopolistically competitive firm. Figure: 11.2 In the figure,
D: Demand curve
MR: Marginal revenue curve
ATC1 and ATC2: Average total cost curves
MC: Marginal cost curve
-In Figure 11.2,assume that the average total cost of the firm is represented by the curve ATC2.In the long run,we would expect:
A) entry of firms into the market because economic profits exist.
B) exit of firms from the market because the existing firms suffer economic losses.
C) that demand for each firm will increase.
D) the market to become perfectly competitive.
E) the market to become a monopoly.
Correct Answer:
Verified
Q1: The major similarity between a monopolist and
Q3: The short-run equilibrium position for a firm
Q4: When the existing firms in a monopolistically
Q5: Which of the following statements about the
Q6: The figure below shows the revenue and
Q7: According to Figure 11.1,the profit-maximizing firm is
Q8: A monopolistically competitive market is characterized by:
A)one
Q9: Why is each firm in a monopolistically
Q10: The figure given below shows revenue and
Q11: A monopolistically competitive firm's demand curve slopes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents