Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?

Related Mcqs:

Which of the following is not a characteristic of a monopolistically competitive market ?

A. free entry and exit B. long run economic profits C. many sellers D. differentiated products...

Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?

A. at the efficient scale and charge a price equal to marginal cost B. at the efficient scale and charge a price above marginal cost C. With excess capacity and charge a price above marginal cost D. With excess capacity and charge a price equal to marginal cost...

When firms enter a monopolistically competitive market and the business-stealing externality is larger than the product-variety externality then ?

A. there are too many firms in the market and market efficiency could be increased if firms exited the market B. the number of firms in the market is optimal and the market is efficient C. There are too few firms in the market and market efficiency could be be increased with additional entry D. … When firms enter a monopolistically competitive market and the business-stealing externality is larger than the product-variety externality then ?Read More...

Which of the following is not an argument put forth by economists in support of the use of advertising ?

A. Advertising increases competition B. Advertising provides information to customers about prices, new products and location of retail outlets. C. Advertising provides a creative outlet for artists and writers D. Advertising provides new firms with the means to attract customers from existing firms....

One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

A. Since price is above marginal cost surplus is redistributed from buyers to sellers B. monopolistically competitive firms earn economic profits in the long run C. monopolistically competitive firms produce beyond their efficient scale D. excess of the cost of production and this causes a deadweight loss....