ECO 182: FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++
In a monopolistically competitive market there are
many firms
In monopolistic competition, there are
many firms making a differentiated product
Which of the following is NOT a characteristic of the market structure for
monopolistic competition?
Firms are price takers.
In monopolistic competition, when firms make an economic profit,
new firms enter the industry so that the price falls and the economic profit eventually
falls to zero.
A monopolistically competitive firm and a monopoly are alike because both
I. face downward sloping demand curves.
II. have marginal revenue curves that lie beneath their demand curves.
III. can make an economic profit in the long run.
I and II.
The figure above shows the situation facing Smart Digit, Inc., a firm in
monopolistic competition that produces calculators. What quantity does the firm
produce?
, 300 calculators per day
The figure above shows the situation facing Smart Digit, Inc., a firm in
monopolistic competition that produces calculators. What is the firm's profit-
maximizing price?
$10
In the figure above, Nike maximizes its profit if it sells ________ pairs of shoes
per day.
$120
In the figure above, Nike maximizes its profit if it charges ________ per pair of
shoes
$75
In the figure above, assuming that the firm does not shut down, the firm will
produce
20 units.
In the figure above, assuming that the firm does not shut down, it will charge a
price of
$3.
In the figure above, the firm's economic
loss will be $30 or less per day.
The figure above shows a firm in monopolistic competition. If all firms in the
industry have the demand and cost curves illustrated in the figure, then in the
long run
some firms will have exited the industry.
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++
In a monopolistically competitive market there are
many firms
In monopolistic competition, there are
many firms making a differentiated product
Which of the following is NOT a characteristic of the market structure for
monopolistic competition?
Firms are price takers.
In monopolistic competition, when firms make an economic profit,
new firms enter the industry so that the price falls and the economic profit eventually
falls to zero.
A monopolistically competitive firm and a monopoly are alike because both
I. face downward sloping demand curves.
II. have marginal revenue curves that lie beneath their demand curves.
III. can make an economic profit in the long run.
I and II.
The figure above shows the situation facing Smart Digit, Inc., a firm in
monopolistic competition that produces calculators. What quantity does the firm
produce?
, 300 calculators per day
The figure above shows the situation facing Smart Digit, Inc., a firm in
monopolistic competition that produces calculators. What is the firm's profit-
maximizing price?
$10
In the figure above, Nike maximizes its profit if it sells ________ pairs of shoes
per day.
$120
In the figure above, Nike maximizes its profit if it charges ________ per pair of
shoes
$75
In the figure above, assuming that the firm does not shut down, the firm will
produce
20 units.
In the figure above, assuming that the firm does not shut down, it will charge a
price of
$3.
In the figure above, the firm's economic
loss will be $30 or less per day.
The figure above shows a firm in monopolistic competition. If all firms in the
industry have the demand and cost curves illustrated in the figure, then in the
long run
some firms will have exited the industry.
