1. The following is true of monopolistic competition in the long run. P=ATC=MR=MC

A. True

B. False

2. Which of the following is true of firms in oligopoly?

A. In the long run, an absence of barriers to entry produces break even profits.

B. Firms are price takers.

C. The goods produced can be either identical or differentiated.

D. Firms act independently of one another.

3. Supposed the market for chocolate has reached a competitive equilibrium price and quantity. Which of the following will create deadweight loss in the chocolate market?

A. An excise tax is imposed on the producers of chocolate.

B. A price floor is set in the market.

C. A price ceiling is set in the market.

D. All the above will create deadweight loss.

4. When the demand for candy decreases, both the equilibrium market price and the equilibrium quantity will decrease.

A. True

B. False

5. The market for leather basketball is currently in equilibrium. If the cost of leather increases for basketball producers, we expect to see a _______ price and a(n) _______ quantity in the market for basketball.

A. Higher; higher

B. Lower; higher

C. Higher; ambiguous change in

D. Higher; lower

6. Which statement about price discrimination is true.

A. It generally hurts the poor.

B. It is inherently evil.

C. It involves changing at least two separate prices for the same good or service.

D. It generally involves deceiving the customers.

7. Product differentiation can take place.

A. Only if there are physical differences among the products.

B. Only if there are no physical differences among the products.

C. Whether or not there are physical differences.

D. None of the above.

Plz Answer correct