Monopolistic competition may lead to each of the following except
A. too many firms in the industry.
B. zero economic profits in the long run.
C. a price that is above the ATC curve in the long run.
D. non-price competition.
C. a price that is above the ATC curve in the long run.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
The costs incurred even when no output is produced are called
A) fixed costs. B) variable costs. C) external costs. D) marginal costs.
The monopolistic competitive firm in short-run equilibrium may experience economic profits that are
A) always zero. B) greater than, equal to, or less than zero. C) always positive. D) always negative.
Increasing concentration always means an industry has become effectively monopolized
a. True b. False Indicate whether the statement is true or false