[Solved] What Is True About Both Perfectly Competitive and Monopolistically Competitive

-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.What is the firm's profit or loss at its optimum price and output? A)A loss of $1,015. B)A loss of $1,350. C)$0. D)A profit of $1,350. E)A profit of $1,584.

-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.

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.

Which of the following statements is correct concerning a typical firm operating under conditions of monopolistic competition in the long run? A)Excess capacity is lowered as demand becomes less elastic. B)It operates on the rising portion of its average cost curve because of excess capacity. C)The greater the product differentiation the lower will be the amount of excess capacity. D)None of the choices are correct.

Why is it impossible for a monopolistically competitive firm to achieve productive efficiency? A)All monopolistically competitive firms are too small. B)All monopolistically competitive firms make economic profits. C)The market demand curve is perfectly elastic. D)The firm's demand curve is not perfectly elastic. E)The firm's marginal cost curve is upward-sloping.

What does excess capacity mean? A)The situation where a firm's output is below economic capacity. B)The situation where a firm's output is above economic capacity. C)The situation where a firm is producing an output below equilibrium. D)The situation where a firm is producing an output above equilibrium.