Question $1$

$10$ Points

In a competitive industry with identical firms, long$-$run equilibrium is$$not$$characterized by

P $=$ AC$.$

P $=$ MC$.$

MR $=$ MC$.$

P $>$ MC$.$

Question $2$

Question $2$

$10$ Points

The primary difference$($s$)$ between monopolistic competition and perfect competition

is the ease of entry and exit into the industry.

is the number of firms in the market.

are both the ease of entry and exit into the industry and the number of firms in the market.

is that products are identical under perfect competition but not under monopolistic competition.

Question $3$

Question $3$

$10$ Points

You are a manager in a perfectly competitive market. The price in your market is $$14.$ Your total cost curve is C$($Q$)=10+4$Q $+0\mathrm{.}5$Q$2.$ What price should you charge in the short run?

$$12$

$$14$

$$16$

$$18$

Question $4$

Question $4$

$10$ Points

You are the manager of a firm that sells its product in a competitive market at a price of $$60.$ Your firm's cost function is C $=33+3$Q$2.$ The profit$-$maximizing output for your firm is

$3$

$5$

$6$

$10$

Question $5$

Question $5$

$10$ Points

Consider a monopoly where the inverse demand for its product is given by P $=2005$Q$.$ Based on this information, the marginal revenue function is

MR$($Q$)=4002\mathrm{.}5$Q$.$

MR$($Q$)=40010$Q$.$

MR$($Q$)=20010$Q$.$

MR$($Q$)=2002\mathrm{.}5$Q$.$

Question $6$

Question $6$

$10$ Points

Which of the following is a strategy used by firms in monopolistically competitive industries to convince consumers that their product is better than their rivals' products?

comparative advertising

niche marketing

equity marketing

comparative advertising or niche marketing

Question $7$

Question $7$

$10$ Points

Which of the following is true under monopoly?

Profits are always negative

P $>$ MC

P $=$ MR

MC $=$ P

Question $8$

Question $8$

$10$ Points

You are the manager of a monopoly that faces a demand curve described by P $=23020$Q$.$ Your costs are C $=5+30$Q$.$ The profit$-$maximizing output for your firm is

$4$

$5$

$6$

$7$