[Solved] -Refer to the Graph Above to Answer This Question

The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry. -Refer to the graph above to answer this question.Which of the following will be the result of the situation illustrated in the graph? A)New firms will enter the industry and this will shift the market supply curve to the right. B)New firms will enter the industry and this will shift the market supply curve to the left. C)Some firms will exit from the industry and this will shift the market supply curve to the right. D)Some firms will exit from the industry and this will shift the market supply curve to the left. E)Long run equilibrium has been achieved and no new entry or exit of firms will occur.

The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry. -What is the profit maximization criterion for a monopolistically competitive firm? A)An output level that is equal to capacity output. B)Price equals average cost. C)Price equals marginal cost. D)Marginal revenue equals average cost. E)Marginal revenue equals marginal cost.

The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry. -What is true about the long-run equilibrium price of a monopolistically competitive firm? A)It will equal average cost and exceed marginal cost. B)It will equal both average cost and marginal cost. C)It will equal marginal cost and exceed average cost. D)It will exceed both average cost and marginal cost. E)It will equal both marginal cost and marginal revenue.

-Refer to the graph above to answer this question.What is the firm's profit-maximizing price? A)$30. B)$38. C)$40. D)$55. E)$72.

-Refer to the graph above to answer this question.What is the firm's profit-maximizing output? A)45. B)90. C)132. D)145. E)157.

-Refer to the graph above to answer this question.Which one of the following statements is correct in the long run? A)Firms will enter the industry and the firm's demand curve will shift to the right. B)Firms will enter the industry and the firm's demand curve will shift to the left. C)Firms will leave the industry and the firm's demand curve will shift to the left. D)Firms will leave the industry and the firm's demand curve will shift to the right.

Which one of the following statements is true about a monopolistically competitive firm in long-run equilibrium? A)Its output is larger than it would be under conditions of perfect competition. B)Its average cost is lower that it would be under conditions of perfect competition. C)It is producing at economic capacity just as it would be under conditions of perfect competition. D)Its price is equal to its marginal cost just as it would be under conditions of perfect competition. E)None of the choices are correct.

What is true about both perfectly competitive and monopolistically competitive firms in long-run equilibrium? A)They produce at minimum average cost. B)They earn economic profits. C)They achieve allocative efficiency. D)They achieve productive efficiency. E)They equate marginal cost and marginal revenue.

Which of the following statements concerning a monopolistically competitive industry is correct? A)If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will decrease. B)If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will increase. C)If there are short-run profits,firms will exit from the industry and the demand of the remaining firms will increase. D)If there are short-run profits,firms will enter the industry and the demand of the remaining firms will increase.

How are a typical monopolistically competitive firm and a typical perfectly competitive firm alike? A)Both face perfectly elastic demand. B)Both experience zero economic profits in the long run. C)Both achieve allocative efficiency only. D)Both achieve productive efficiency only. E)Both achieve allocative and productive efficiency.