Which of the following firms are in a monopolistically competitive market?
A) the many retail firms such as JCPenney, Sears, The Gap, and so on
B) the sole local providers of electricity, such as Kansas Power and Light, or Pacific Gas and Electric
C) the many farmers that grow wheat
D) None of the above are in a monopolistically competitive market.
A
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Which of the following is a flow variable?
A) consumption B) savings C) wealth D) population
______ is the cost of inputs whose use does not vary as the firm's output changes.
A. Sunk cost B. Fixed cost C. Total cost D. Explicit cost
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.
In which market structure will a firm choose not to shut down when price is less than average variable cost?
A. monopoly B. monopolistic competition C. perfect competition D. None of these. Any firms will shut down when P < AVC.