ECO890

Price and cost (dollars per client) 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Quantity (clients per day) 11) Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand 11) and cost curves for his firm, which competes in a monopolistically competitive market. Kevin will train how many clients per day? A) between 2 and 4 B) 6 C) 10 D) 4 E) None of the above answers is correct. 12) Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand 12) and cost curves for his firm, which competes in a monopolistically competitive market. What price will Kevin charge per session? A) $20 B) $80 C) $60 D) $100 E) $40 13) In monopolistic competition, the products of different sellers are 13) A) similar but slightly different. B) unique without any close or perfect substitutes. C) perfect substitutes. D) identical E) either identical or differentiated. 14) When a monopolistically competitive firm's demand curve shifts leftward, what happens to its 14) marginal revenue curve? A) It disappears. B) Nothing, the marginal revenue curve is unchanged. C) It shifts leftward. D) It shifts rightward. E) None of the above is correct because the effect on the marginal revenue curve depends on whether the demand was initially elastic or inelastic. 15) Firms in an oligopoly 15) i. are independent of each others' actions. in. can each influence the market price. ili. charge a price equal to marginal revenue. A) i only B) i and ini C) ii only D) Hii only E) i, ii, and ini 16) When oligopolies seek to operate as a single-price monopoly, the firms produce at the point 16) where A) MR =MC. B) P =MR. C)P B? (13 points) 5. What happens for entrepreneurs if A /? (5 points)