In the short run, if the price is above average total cost in a monopolistically competitive market, the firm makes ?

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

A. marginal revenue and then use the demand curve to determine the price consistent with this quantity B. average total cost and then use the supply curve to determine the price consistent with this quantity C. marginal revenue and then use the supply curve to determine the price consistent with this quantity D. average total … Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which...

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....