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13-21
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
C.
exceed MC but equal ATC.
D. exceed both MC and ATC.
52. Which of the following is correct for a monopolistically competitive firm in long-run
equilibrium?
53. In the long run, economic theory predicts that a monopolistically competitive firm will
54. Excess capacity refers to the
55.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This
firm's profit-maximizing price will be
13-23
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Difficulty:
02 Medium
Learning Objective: 13-02 Explain why monopolistic competitors earn only a normal
profit in the long run.
Test Bank: I
Topic:
Price and Output in Monopolistic Competition
Type: Graph
56.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. The
profit-maximizing output for this firm will be
57.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This
firm will realize an economic
58.
In short-run equilibrium, the monopolistically competitive firm shown will set its price
59.
The monopolistically competitive firm shown in the figure
60.
If all monopolistically competitive firms in the industry have profit circumstances similar
to the firm shown,
61.
Refer to the diagram. In short-run equilibrium, the monopolistically competitive firm
shown will set its price
62.
Refer to the diagram. The monopolistically competitive firm shown
63.
Refer to the diagram. If all monopolistically competitive firms in the industry have profit
circumstances similar to the firm shown above,
64.
Refer to the diagrams, which pertain to monopolistically competitive firms. Short-run
equilibrium entailing economic loss is shown by
65.
Refer to the diagrams, which pertain to monopolistically competitive firms. A short-run
equilibrium entailing economic profits is shown by
66.
Refer to the diagrams, which pertain to monopolistically competitive firms. Long-run
equilibrium is shown by
67. Which of the following is not characteristic of long-run equilibrium under monopolistic
competition?
13-34
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D. Price exceeds marginal cost.
68.
Refer to the diagram for a monopolistically competitive firm. Long-run equilibrium price
will be
13-35
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: I
Topic:
Price and Output in Monopolistic Competition
Type: Graph
69.
Refer to the diagram for a monopolistically competitive firm. Long-run equilibrium output
will be
70.
Refer to the diagram for a monopolistically competitive firm. If more firms were to enter
the industry and product differentiation were to weaken, then
71. Long-run equilibrium for a monopolistically competitive firm where economic profits
are zero results from
13-37
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D. product differentiation and development.
72. When a monopolistically competitive firm is in long-run equilibrium,
73. If some firms leave a monopolistically competitive industry, the demand curves of the
remaining firms will
74. When a monopolistically competitive firm is in long-run equilibrium,
75. Other things equal, if more firms enter a monopolistically competitive industry,
76. Which of the following statements is correct?
13-39
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Understand
Difficulty:
02 Medium
Learning Objective: 13-02 Explain why monopolistic competitors earn only a normal
profit in the long run.
Test Bank: I
Topic:
Price and Output in Monopolistic Competition
77. For a monopolistically competitive firm in long-run equilibrium,
78. In long-run equilibrium, both purely competitive and monopolistically competitive
firms will
79. In long-run equilibrium, monopolistic competition entails
13-40
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B. an overallocation of resources due to inadequate capacity.
C.
an underallocation of resources due to excess capacity.
D. production at the minimum attainable average total cost.
80. Which of the following statements concerning a monopolistically competitive industry
is correct?
81. Answer the question on the basis of the following demand and cost data for a specific
firm.
Demand Data
Cost Data
(1)
Price
(2)
Price
(3)
Quanti
ty
Outpu
t
Total
Cost
$11.0
0
$10.0
0
6
6
$61
