7. Under profit maximising monopolistic competition a firm's :

a.price is greater than the average cost in the long run b.has significant barriers to entry enabling excess profits to be made in the long run. c.price is greater than the marginal cost in the long run d.costs are higher than they could be due to a lack of competitive pressure

8. Gross National Income is equal to:

a.Gross Domestic Product minus depreciation b.Net National Income plus net property income from abroad c.Net National Income plus depreciation

d.Gross Domestic Product minus net property income from abroad

9. In the Kinked Demand Curve theory:

a.The oligopoly firm will tend not to sets its price at the profit maximising price. b.Demand is fairly relatively inelastic for price falls and relatively elastic for price rises. c.The oligopoly firm will always keep its price fixed if its marginal cost rises

d.Demand is fairly relatively elastic for price falls and relatively inelastic for price rises.