6. Inefficiency in monopolistically competitive markets is evident because each

Question

6. Inefficiency in monopolistically competitive markets is evident because each firm
a. Creates more value relative to their competitors
b. Becomes the first firm in the market
c. Produces with excess capacity
d. Manages chance events

7. Profit maximization in the long run for a monopolistically competitive firm requires
a. Positive economic profit
b. Efficient production
c. Zero economic profit
d. Negative economic profit

8. Which firm structure must maintain their product differentiation through advertising?
a. Oligopoly
b. Monopoly
c. Monopolistic competition
d. Perfect competition

9. Monopolistic competitive firms
a. Earn economic profit in the long run and produce efficiently
b. Earn no economic profit in the long run but produce efficiently
c. Earn economic profit in the long run but do no produce efficiently
d. Earn no economic profit in the long run and do not produce efficiently

10. Using the grapsh below, a monopoly firm would priduce output equal to
a. 50 units
b. 14 units
c. 150 units
d. 100 units

Explanation / Answer

a. Creates more value relative to their competitors a. Positive economic profit b. Monopoly b. Earn no economic profit in the long run but produce efficiently a. 50 units

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