a) her economics profits in the long run will be pushed to $0. Domestic Supply PA b) her MR curve will lie above her Demand curve, except at the first unit of output. MC, she is likely to experience "excess capacity" at her restaurant. A A both a. and c. will occur, but not b. MC, 10. The demand curve facing a monopoly is negatively sloped but is B MC, Price Cil P 2 World Price Price or Cost (per unit) rather inelastic because: E C Domestic Demand a) quantity demanded doesn't change at all when price increases P b ) there are no good substitutes for the product produced by the monopolist. D customers have no loyalty to the product. 0 Q2 Q3 there are only very weak barriers to the entry of new firms into Quantity of Wheat a monopoly market. D MR Deman 16. Refer to Figure I above. This country should in the H amount of 13. In the above graph of non-collusive oligopoly, if the Marginal a) export wheat, Q1 to Q2 (NEXT PAC export wheat, Q2 to Q3 Cost curve shifts from MC1 to MC3, there will be: 11. In which market structure will a firm choose to stay in business c) import wheat, Q1 to Q3 (i.e. not shut down) when P