11. In a non-cooperative duopoly a key assumption is that:

A. each firm abides by the rules they establish.

B. each firm has monopoly power in its sales territory.

C. each firm thinks the other firm is cheating.

D. each firm ignores what the other firm does.

12. An attorney for a firm that is arguing that its market is competitive rather than monopolistic would be most likely to argue that the relevant market is shown by a:

A. four-digit NAICS industry.

B. six-digit NAICS industry.

C. five-digit NAICS industry.

D. three-digit NAICS industry.

21. A monopolistically competitive industry has many firms that sell differentiated products.

True

False

23. A monopolistically competitive firm faces a downward-sloping demand curve.

True

False

24. For a monopolistic competitor:

P = MC in long-run equilibrium.

P > ATC in long-run equilibrium.

P = ATC in long-run equilibrium.

P = MR in long-run equilibrium.