monopolistically competitite 23. In the long run, what happens to the demand cur
ID: 1119358 • Letter: M
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monopolistically competitite 23. In the long run, what happens to the demand curve facing a firm that is earning short-nun profits a) The demand curve will shift to the right and became more elastic. C) The demand curve will shin to the left and became less elastic. demand curve will shift to the right and became less elastic. D) The demand curve will sh competitive firm in the long 24. Which type of efficiency is achieved by a monopolistically run? A) Allocative efficiency B) Productive efficiency C) Neither allocative nor productive efficiency D) Both 25. A firm that has the ability to control to some degree the price of the product it sells A) is also able to dictate the quantity purchased. B) faces a demand curve that is inelastic throughout the entire range of market demarn C) is a price maker. D) faces a perfectly inelastic demand curve. 26. Governments grant patents to encourage A) competition. B) low prices. C) research and development on new products. D) firms to form public enterprises. 27. To be a natural monopoly a firm must A) control a key resource input. B) have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms. C) have significant network externalities. D) be in a government-regulated market 28. A profit-maximizing output for a monopoly is determined by the intersection of curve. le curves and the profit-maximizing price is found on the A) total revenue and total cost, total revenue B) marginal cost and marginal revenue; marginal revenue C) demand and supply; supply D) marginal cost and marginal revenue; demand E) marginal cost and average total cost:; demandExplanation / Answer
Ans)
23.
D) The demand cure will shift to the left and became more elastic.
In the long term more firms enter the market excess profits are absorbed , as a result of entry of new firms the demand curve faced by an individual firm will decrease and become more elastic.
24.
C) Neither allocative nor productive efficiency.
The long run monopolistically competitive is neither allocative nor productive.It is inefficient.
25.
C) is a price maker
A firm that has the ability to control to some degree the price of the product it sells it is price searcher.
26.
C) research and development on new products.
Government grant patents to encourage research and development on new products giving exclusive rights to firms to produce a product.
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