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Which two curves are tangent to one another in a monopolistically competitive market with zero economic profit demand and average variable cost demand and average total cost

81. Which two curves are tangent to one another
in a monopolistically competitive market with zero economic profit?
a. demand
and average variable cost
b. demand
and average total cost
c. marginal
revenue and average variable cost
d. marginal
revenue and average total cost

82. A downward-sloping demand curve
a. is
a feature of all monopolistically competitive firms.
b. means
that the firm in question will never experience a zero profit.
c. causes
marginal revenue to exceed price.
d. All
of the above are correct.

83. Excess capacity
a. tells
economists little about the desirability of a market outcome.
b. is
the primary source of market inefficiency in monopolistically competitive
markets.
c. is
a characteristic of rising average-total-cost curves.
d. is
solely a characteristic of markup pricing.

84. In a monopolistically competitive market,
a. there
are only a few sellers.
b. each
firm takes the price of its product as given.
c. firms
can enter or exit the market without restriction.
d. each
firm produces a product that is essentially identical to the products of other
firms in the market.

85. A monopolistically competitive market
a. has
some features of monopoly and some features of competition.
b. has
one large, dominant firm and many other smaller firms.
c. is
very difficult to enter.
d. All
of the above are correct.

86. In both perfect competition and monopolistic
competition,
a. each
firm is, in many ways, like a monopoly.
b. each
firm sells a product that is at least slightly different from those of other
firms.
c. each
firm faces a downward-sloping demand curve.
d. there
are many sellers.

87. Examples of monopolistically competitive
markets include the markets for
a. restaurants
and furniture.
b. books
and movies.
c. cookies
and restaurants.
d. All
of the above are correct.

88. Examples of monopolistically competitive
markets do not include the market for
a. piano
lessons.
b. soybeans.
c. cookies.
d. voice
lessons.

89. For existing firms in a monopolistically
competitive market,
a. strategic
interactions among the firms are very important.
b. the
threat of entry by new firms is not an important consideration.
c. the
attainment of a Nash equilibrium is an important objective.
d. None
of the above are correct.

90. Each firm in a monopolistically competitive
firm faces a downward-sloping demand curve because
a. there
are many other sellers in the market.
b. there
are very few other sellers in the market.
c. that
firm’s product is different from those offered by other firms in the market.
d. that
firm faces the threat of entry into the market by new firms.

May 02 2020 View more View Less

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