Quick Quiz

3. The firm represented by Figure 11-2(c) is a. making a normal profit.

b. incurring a loss, once opportunity costs are considered.

c. producing at the same level of output as a purely competitive firm.

d. producing a standardized product.

4. Which of the following pairs are both competition-like elements in monopolistic competition?

a. Price exceeds MR; standardized product.

b. Entry is relatively easy; only a normal profit in the long run.

c. Price equals MC at the profit-maximizing output; economic profits are likely in the long run.

d. The firms' demand curve is downsloping; differentiated products.

Part Two • Microeconomics of Product Markets

Was this article helpful?

0 0

Post a comment