Question

Use the following information and/or graph to answer questions 5-7: A monopolistically competitive firm is facing this demand for its product: P = 120 - 1/4Q. The marginal cost is equal to average total cost: MC = ATC = 40. 5) This monopolistically competitive firm will produce quantity at a unit price of per unit. a) 40 / 110 b) 40 / 100 c) 80 / 80 d) 160 / 80 6) This monopolistically competitive firm is in a equilibrium and is experiencing a) short run / 6400 of profits. b) short run / 1400 or profits. c) long run / zero economic profits. d) Short run / 2800 of losses. 7) This monopolistically competitive firm has total costs of while producing the equilibrium quantity. a) 2800 b) 6400 c) 1600 d) 800

          Use the following information and/or graph to answer questions 5-7:
A monopolistically competitive firm is facing this demand for its product: P = 120 - 1/4Q. The
marginal cost is equal to average total cost: MC = ATC = 40.
5) This monopolistically competitive firm will produce quantity ____ at a unit price of ____ per unit.
a) 40 / 110
b) 40 / 100
c) 80 / 80
d) 160 / 80
6) This monopolistically competitive firm is in a ____ equilibrium and is experiencing ____
a) short run / 6400 of profits.
b) short run / 1400 or profits.
c) long run / zero economic profits.
d) Short run / 2800 of losses.
7) This monopolistically competitive firm has total costs of ____ while producing the equilibrium quantity.
a) 2800
b) 6400
c) 1600
d) 800

Use the following information and/or graph to answer questions 5-7:
A monopolistically competitive firm is facing this demand for its product: P = 120 - 1/4Q. The
marginal cost is equal to average total cost: MC = ATC = 40.
5) This monopolistically competitive firm will produce quantity at a unit price of per unit.
a) 40 / 110
b) 40 / 100
c) 80 / 80
d) 160 / 80
6) This monopolistically competitive firm is in a equilibrium and is experiencing
a) short run / 6400 of profits.
b) short run / 1400 or profits.
c) long run / zero economic profits.
d) Short run / 2800 of losses.
7) This monopolistically competitive firm has total costs of while producing the equilibrium quantity.
a) 2800
b) 6400
c) 1600
d) 800

Added by Francisco R.

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