121. Which of the following statements regarding monopolistic vain is not correct?

a.

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In the long-run equilibrium, price equals average complete cost.

b.

In the long-run equilibrium, firms earn zero economic profit.

c.

In the long-run equilibrium, firms charge a price above marginal cost.

d.

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.

a positive financial profit because it is charging a price above marginal cost.

b.

no financial profit because it is charging a price same to that marginal cost.

c.

a positive financial profit due to the fact that it is charging a price above its average full cost.

d.

no financial profit since it is charging a price same to that average full cost.

 

Figure 16-7

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

a.

long-run financial losses.

b.

a to decrease in the diversity of products offered in the market.

c.

new participants in the market.

d.

firms exiting the market.

 

124. Express to figure 16-7. Which of the diagrams illustrates the affect of part existing firms leaving the market?

a.

panel a

b.

panel b

c.

panel c

d.

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panel d

 

Table 16-3

This table shows the need schedule, marginal cost, and also average full cost for a monopolistically vain firm.