The marginal revenue curve for a monopolistically competitive firm, when compared to the marginal revenue curve for a perfectly competitive firm, is
A. identical in that they are both vertical.
B. steeper.
C. identical in that they are both horizontal.
D. flatter.
Answer: B
You might also like to view...
Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry
a. True b. False Indicate whether the statement is true or false
You paid $25 for your ticket to the football game, only to see your favorite team losing 28-0 at the end of the first quarter. That $25 should now be regarded as a(n) ____ cost that should be ____ in your decision on whether or not to stay at the game.
Fill in the blank(s) with the appropriate word(s)
When a firm does more of something, it gets better at it. This learning-by-doing is:
A. a source of diseconomies of scale. B. a source of economies of scale. C. called the principle of natural progression. D. called "spreading the overhead."
Answer the following statement true (T) or false (F)
1) After all long-run adjustments have been completed, a firm in a competitive industry will produce that level of output where average total cost is at a minimum. 2) The long-run supply curve for a decreasing-cost industry is downsloping. 3) Marginal cost is a measure of the alternative goods that society forgoes in using resources to produce an additional unit of some specific product. 4) Because the equilibrium position of a purely competitive seller entails an equality of price and marginal costs, competition produces an efficient allocation of economic resources. 5) When entrepreneurs in competitive industries successfully innovate to lower production costs, it usually results in long-run economic profits for the firm.