3 Of 16a. A monopolistic competitor, much like a firm in perfectb. Advertising can play a role as an indirect signal ofcompetition, sells its product at a pointproduct quality to customers.where the price is equal to the marginal cost.truefalsetrueO falsec. Monopolistically competitive industries are more likelyd. In the long run, monopolistic competitors make ato make use of advertising to create products that catchsimilar amount of profit to monopolists, since, in bothon in mainstream popularity than industries in perfectcases, the firm's demand curves are downward sloping,competition.and at the profit maximizing point, the marginal cost istruefalseequal to the marginal revenue.O trueO falsee. In the short term, a monopolistic competitor will makea profit if the demand curve is above the average totalcost curve at some point.truefalse

A.) False In monopolistic competitive market a firm cannot sell its product when the price is equal…

a. A monopolistic competitor, much like a firm in perfect b. Advertising can play a role as an indirect signal of competition, sells its product at a point product quality to customers. where the price is equal to the marginal cost. O false true O true false

a. A monopolistic competitor, much like a firm in perfect b. Advertising can play a role as an indirect signal of competition, sells its product at a point product quality to customers. where the price is equal to the marginal cost. O false true O true false

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 4PA

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Question

3 Of 16
a. A monopolistic competitor, much like a firm in perfect
b. Advertising can play a role as an indirect signal of
competition, sells its product at a point
product quality to customers.
where the price is equal to the marginal cost.
true
false
true
O false
c. Monopolistically competitive industries are more likely
d. In the long run, monopolistic competitors make a
to make use of advertising to create products that catch
similar amount of profit to monopolists, since, in both
on in mainstream popularity than industries in perfect
cases, the firm's demand curves are downward sloping,
competition.
and at the profit maximizing point, the marginal cost is
true
false
equal to the marginal revenue.
O true
O false
e. In the short term, a monopolistic competitor will make
a profit if the demand curve is above the average total
cost curve at some point.
true
false

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