A monopolistically competitive firm
A. can sell an infinite amount of output at the market-determined price.
B. sells a fixed amount of output regardless of price.
C. must lower price to sell more output.
D. must raise price to sell more output.
Answer: C
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A) 1970 B) 1980 C) 1990 D) 2000 E) 2010
Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. If the price-taking firm is currently producing 6 units, it should _____ to maximize profit in the short run
a. ?decrease production below 6 units b. ?increase production to 12 units c. ?increase production to 8 units d. ?keep producing 6 units e. ?increase production to 14 units
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
In the table above, the marginal benefit of the 4 millionth television set is
A) negative 0.5 computers per television set. B) 0.25 computers per television set. C) 0.5 computers per television set. D) 1.0 computer per television set.