Can you answer the following study questions as best as you can? If you are not sure, would you give a web site that I can go to for answers?
Question 1: Monopolistic competition is similar to perfect competition in that:
a. there are a large number of firms.
b. firms earn economic profits in the long run.
c. firms face downward-sloping demand curves
d. both a and b.
e. all of the above.
Question 2: A monopolist will maximize profit by producing the level of output at which
a. the firm's total revenue exceeds total cost by the largest amount.
b. marginal revenue equals marginal cost.
c. the last unit of output produced adds the same amount of total revenue as total cost.
d. both a and b.
e. all of the above.
Question 3: A profit-maximizing monopolist will always produce a level of output at which
a. demand is elastic.
b. demand is inelastic.
c. price is gretaer than average total cost.
d. marginal revenue is greater than average total cost.
Question 4: A monopolist which suffers losses in the short run will
a. continue to operate as long as total revenue covers fixed costs.
b. raise price in order to eliminate losses.
c. exit in the long run if there is no plant size that will result in economic profit that is greater than or equal to zero.
d. both a and b.
e. both a and c.
Question 5: Which of the following is true of a monopolist in the long run?
a. The firm will charge a price that is higher than long-run marginal cost.
b. The firm will charge a price that is equal to or greater than long-run average cost.
c. The firm will produce that level of output at which long-run average cost is minimum.
d. both a and b.
e. both b and c.