If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting when:
A. the price is equal to the firm's marginal cost.
B. the price is equal to the firm's average total cost.
C. the price is the same as what a perfectly competitive firm's price would be.
D. there is no deadweight loss.
B. the price is equal to the firm's average total cost.
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Which of the following markets will have the largest deadweight loss?
A) A market that consists of perfectly competitive firms. B) A market that consists of a single-price monopoly. C) A market that consists of a perfect price discriminating monopoly. D) None of the above. There is no deadweight loss as long as firms produce at the level of output where marginal revenue equals marginal cost.
Refer to Scenario 1. The production function illustrated in the table:
A) incurs diminishing marginal returns beyond the first unit of labor. B) incurs diminishing marginal returns beyond the second unit of labor. C) incurs diminishing marginal returns beyond the third unit of labor. D) does not incur diminishing marginal returns because marginal product is positive for each unit of labor employed.
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