A firm in long-run equilibrium under monopolistic competition will earnA) positive oligopoly profits because each firm sells a differentiated product.B) zero economic profits because of free entry.C) negative economic profits because it has economies of scale.D) positive economic profit if it engages in international trade.E) positive monopoly profits because each sells a differentiated product.

For each of the following characteristics, say whether it describes a monopoly firm,a monopolistically competitive firm, both, or neither: a) faces a downward-sloping demand curve b) has marginal revenue less than price c) faces the entry of new firms selling similar products d) earns economic profit in the long run e) equates marginal revenue and marginal cost f) produces the socially efficient quantity of output.

Which of the following is true about a monopolistically competitive firm?Group of answer choicesIt can earn an economic profit in the short run, but not the long run.It can earn an economic profit in the short run and the long run.It can earn an economic profit in the long run, but not the short run.It cannot earn a economic profit in either the short or long run.

3. Monopolistic competition is associated withA) product differentiation.B) price-taking behavior.C) increasing returns to scale.D) high profit margins in the long run.E) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions.

Positive economic profits exist for a firm in the long run if price is aboveQuestion 4Select one:a.long-run marginal cost.b.long-run total cost.c.long-run variable cost.d.long-run average cost.

Economic profits in a short-run equilibriumQuestion 1Select one:a.are never negative because a firm would shutdown if profits are negative.b.may be positive, zero, or negative.c.will never exceed the difference between marginal revenue and marginal cost per unit of output.d.are always zero.