ECON 201 Week 7 Quiz (Chapter 11) | Score 90/130 | American Military University

ECON 201 Week 7 Quiz (Chapter 11)
Results Attempt 1 of 1

Written Jun 17, 2025 3:25 PM - Jun 17, 2025 4:14 PM

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Overall Grade (Highest Attempt)

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Profit Maximization for a Firm in Monopolistic Competition

Profit Maximization for a Firm in Monopolistic Competition



Question 1 points

(Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces
a firm's fixed costs and reduces cost from ATC to ATC' Before the innovation reduced the cost, the firm's
maximum economic profit was:

Question options:

Unselected

$0.

Unselected

$30.

Selected

$750.

Unselected

$4,500.

Question 2 points

(Exhibit: Profit Maximization for a Firm in Monopolistic Competition.) Suppose that an innovation
reduces a firm's fixed costs and reduces cost from ATC to ATC' After the innovation reduced the cost, the
firm's maximum economic profit is:

Question options:

Unselected

$0.

, Unselected

$30.

Unselected

$1,500.

Selected

$3,000.

Question 3 points

(Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces
a firm's fixed costs and reduces cost from ATC to ATC' Suppose further that after the innovation reduced
the cost to ATC?, it costs a total of $18 per unit to produce 170 units per day. If the firm charges a price
equal to marginal cost, total net profit will be:

Question options:

Selected

$1,700.

Unselected

$1,190.

Unselected

$3,060.

Unselected

$3,400.

Question 4 points

Monopolistic competition is an industry characterized by a:

Question options:

Unselected

small number of firms producing identical products, with barriers to entry for firms.

Selected

small number of firms producing similar products, with relatively easy entry for firms.

Unselected

large number of firms producing similar products, with relatively easy entry for firms.

Unselected