121. Which of the following statements regarding monopolistic vain is not correct?
In the long-run equilibrium, price equals average complete cost.
In the long-run equilibrium, firms earn zero economic profit.
In the long-run equilibrium, firms charge a price above marginal cost.
In the long-run equilibrium, firms create a quantity in excess of their effective scale.
122. Take into consideration a monopolistically competitive certain in a sector in long-run equilibrium. This certain is most likely earning
a positive financial profit because it is charging a price above marginal cost.
no financial profit because it is charging a price same to that marginal cost.
a positive financial profit due to the fact that it is charging a price above its average full cost.
no financial profit since it is charging a price same to that average full cost.
The present in the figures below illustrate the potential effect of entry and also exit in a monopolistically competitive industry on either the need curve or the marginal price curve of currently firms.
123. Refer to number 16-7. Dashboard (d) illustrates the readjust that would take place if existing this firm faced
long-run financial losses.
a to decrease in the diversity of products offered in the market.
new participants in the market.
firms exiting the market.
124. Express to figure 16-7. Which of the diagrams illustrates the affect of part existing firms leaving the market?
This table shows the need schedule, marginal cost, and also average full cost for a monopolistically vain firm.