QUESTION 4If a monopolistically competitive market experiences economic loss in the short run thenO a. some of the new firms will enter the market in the long-run,O b. some of the existing firms will exit the market in the long-run.O c. all the firms will stay in the long-run.O d. some firms will stay and some firms will leave the market in the long-run.QUESTION 5One similarity between a monopoly firm and a monopolistically competitive firm isO both have downward sloping demand curve which is above the marginal revenue curve.O both have downward sloping demand curve which is below the marginal revenue curve.O that the demand curve for both are horizontal.O that the demand curve for both are vertical.QUESTION 6A positive economic profits in the short-run of a monopolistically competitive market wouldO a. cause the market to become perfectly competitive in the long-run.O b. make no difference as no firms entering or exiting in the long-run.O. make some existing firms to leave the market in the long-run.O d. attract more new firms to enter in the market in the long-run.

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fa monopolistically competitive market experiences economic loss in the short run then a. some of the new firms will enter the market in the long-run. O b. some of the existing firms will exit the market in the long-run. O . all the firms will stay in the long-run. d. some firms will stay and some firms will leave the market in the long-run.

fa monopolistically competitive market experiences economic loss in the short run then a. some of the new firms will enter the market in the long-run. O b. some of the existing firms will exit the market in the long-run. O . all the firms will stay in the long-run. d. some firms will stay and some firms will leave the market in the long-run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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