22.When a new business enters an industry,

A) the market-clearing price falls.

B) other businesses in the industry exit.

C) economic losses decrease.

D) the market-clearing price rises.

E) economic profits increase.

23.Which statement istrue?

A) Oligopoly demand is more inelastic than for monopoly.

B) Oligopoly demand is more elastic than for perfect competition.

C) Oligopoly usually has economies of scale.

D) Monopolistic competition elasticity of demand is closer to monopoly than to perfect competition.

E) Monopolistic competition pricing power is closer to monopoly than to perfect

competition.

24. At a price of $50, Gina sold 4 kisses at her charity fundraiser last week. Last night, she dropped her price to $40 and sold 5 kisses. Gina's marginal revenues are

A) $200.

B) $50.

C) $0. D) $40. E) $10.

25.Increasing marginal costs can come from

A) diminishing returns.

B) businesses operating near capacity.

C) inputs that are not equally productive in all activities. D) paying overtime wages to employees.

E) all of the above.

26.A price-making business must follow the one-price rule and faces the following demand schedule: at prices of $7, $6, $5, $4, and $3, quantity demanded is 300, 400, 500, 600, and 700 units respectively. If the business's marginal cost is constant at $250, it maximizes profits by producing

A) 700 units and charging a price of $3.

B) 600 units and charging a price of $4.

C) 500 units and charging a price of $5.

D) 400 units and charging a price of $6.

E) 300 units and charging a price of $7.

27. When a business has more than one price it must avoid ________ among people who are paying the ________ price.

A) resentment; lower

B) deregulation; lower

C) deregulation; higher D) jealousy; higher

E) resentment; higher

28.The market supply curve slopes upward to the right because higher prices

A) create incentives for increased quantity supplied.

B) are necessary to cover increasing marginal opportunity costs because inputs are not equally productive in all activities.

C) bring higher profits.

D) are necessary to cover increasing marginal opportunity costs because of diminishing marginal productivity.

E) all of the above.