4. Refer to the above graph. In the short run, this monopolistically competitive firm will set price at:A) $65 and produce 45 units of output.B) $65 and produce 35 units of output.C) $50 and produce 35 units of output.D) $50 and produce 50 units of output. ) $50 and produce 45 unites of output.5. Refer to the above graph. At the profit-maximizing level of short-run output, this monopolistically competitive firm will be making a profit of:A) $275.B) $350.C) $500.D) $525.E) $600.6. The larger the number of firms and the smaller the degree of product differentiation the:A) greater the divergence between the demand and the marginal revenue curves of the monopolistically competitive firm.B) larger will be the monopolistically competitive firm's fixed costs.C) less elastic is the monopolistically competitive firm's demand curve.D) more elastic is the monopolistically competitive firm's demand curve.E) none of the above.7. When a perfectly competitive firm is in long-run equilibrium, price is equal to:A)marginal cost, but may be greater or less than average total costB) minimum average total cost, and also to marginal cost.C)minimum average total cost, but may be greater or less than marginal cost.D)marginal revenue, but may be greater or less than both average total cost and marginal cost.E)marginal average product.8. Organization of the Petroleum Exporting Counties (OPEC) provides an exampA)B)C) D)E)a tacit understanding. noncollusive oligopoly.an international cartel.a monopolistically competitive industry.price leadership.

Use the following to answer questions 4-5: The graph depicts a monopolistically competitive firm. MC 90 65 Dollars ($) 55 ATC D MR O 10 20 35 45 50 Quantity of output (units)