D Question 10 1 pts In the long-run for this monopolistically competitive industry we should expect: Supporting Materials MC ATC woo m n AVC Demand MR K Quantity O No changes. O Entry of firms into the industry O Exit of firms from the industry Previous NextQuestion 11 1 pts Like a rm in perfect competition, a monopolist 0 sets price higher than marginal cost 0 maximizes prots when MR = MC 0 all of the above 0 faces (perceives) the market demand curve 4 Previous Next 9 D Question 12 1 pts If this is monopolistic competition we know that: Supporting Materials MC /ATC Price Demand FJL Quantity O There will be no entry or exit as the graph illustrates long run equilibrium O There will be entry which will lower MR O There will be entry which will raise ATC O There will be exit which will raise ATC O There will be exit which will lower demand Previous NextD Question 13 1 pts In the short-run this profit-maximizing firm in monopolistic competition would produce how much? Supporting Materials MC ATC AVC Price Demand MAR H Quantity O J O None of these is correct OI OH OK Previous NextD Question 14 1 pts An industry has 25 firms all with identical market shares. Two of the firms then merge together. By how much does the Herfindahl index rise? (please do this without a calculator... for your own good) 0 8 O 32 125 O 16 Previous NextQuestion 15 1 pts There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the government... not the "free" market. Let's think about why that is the case... The economic logic of government ownership and having a marginal price of 0 (that is, it is free to cross the bridge} is: O Bridges are public goods because they are non-excludable and non-rival. 0 Only the government can be trusted to build a sophisticated structure such as a bridge. 0 There is no justication for government intervention here. This should be left to the free market. 0 The owner of the bridge has a natural monopoly and the marginal cost of production [letting another car drive across it} is close to zero. Question 16 1 pts If this rm priced at B and sold K units: Supporting Materials a ---------------- no I ... ......... 0 It would be prot-maximizing 0 It would earn positive economic prots but we cannot measure them with the information provided. 0 It would earn 0 economic prots. 0 It would lose exactlyr xed costs. 0 It would earn negative economic prots equal to the area [B-leK 1 Previous