19. In the long run, what do we know about the scale at which a perfectly competitive rm operates, compared to a monopolistically competitive rm? a. A perfectly competitive rm and a monopolistically competitive rm both operate at the efcient scale. b. A perfectly competitive rm operates at an efcient scale and a monopolistically competitive rm operates with excess capacity. c. A perfectly competitive rm and a monopolistically competitive rm both operate with excess capacity. d. A perfectly competitive rm operates with excess capacity and a monopolistically competitive rm operates at the efcient scale. 20. What is one way in which a prot-maximizing rm in a monopolistically competitive market differs from a rm in a perfectly competitive market? a. The rm in the monopolistically competitive market is characterized by market share maximization. b. The rm in the monopolistically competitive market has no barriers to entry. c. The rm in the monopolistically competitive market faces a downwardsloping demand curve for its product. d. The rm in the monopolistically competitive market faces a horizontal marginal revenue curve at the market clearing price. 21. New rms will necessarily enter a monopolistically competitive market when price exceeds what amount? a. marginal revenue b. average variable cost c. marginal cost d. average total cost 22. Entry and exit drive each rm in a monopolistically competitive market to a point _o_f tangency between which of its curves? a. marginalrevenue curve and its totalcost curve b. marginal-revenue curve and its average-total-cost curve c. demand curve and its total-cost curve d. demand curve and its average-total-cost curve 23. What can measure the economic inefficiency of a monopolist? a. the number of consumers who are unable to purchase the product because of its high price b. the excess profit generated by monopoly firms C. the loss of producer surplus by monopoly firms d. the deadweight loss 24. What does the free entry and exit of firms in a monopolistically competitive market guarantee? a. Both economic profits and economic losses can persist into the long run. b. Both economic profits and economic losses disappear in the long run. C. Both economic profits and economic losses increase in the long run. d. Both economic profits and economic losses decrease in the long run. 25. In theory, which outcome occurs with perfect price discrimination? a. It decreases the monopolist's profits. b. It decreases consumer surplus. C. It increases deadweight loss. d. It decreases total output.Marginal Cost $20 Quin!!! Marginal Revenue I 26. Refer to Figure 15-7. To maximize its prot, which outcome would a monopolist choose? a. 100 units of output and a price of $10 per unit b. 100 units of output and a price of $20 per unit c. 150 units of output and a price of $15 per unit d. 200 units of output and a price of $10 per unit 27. What situation is described by perfect price discrimination? a. The monopolist knows the exact willingness to pay 9_f each of its customers. b. The monopolist charges exactly two different price to exactly two different groups of customers. c. The monopolist maximizes consumer surplus. d. The monopolist experiences a zero economic prot. 28. If a monopolist is able to perfectly price discriminate, which outcome results? a. Consumer surplus is always increased. b. Total surplus is always decreased. c. Consumer surplus and deadweight losses are transformed into monopoly prots. d. The price effect dominates the output effect on monopoly revenue