If a firm shuts down in the short run

its loss equals zero.

its loss equals its fixed cost.

is makes zero economic profit.

its total revenue is not large enough to cover its fixed cost.

Which of the following is not a characteristic of a monopolistically competitive market structure?

There is a large number of independently acting small sellers.

All sellers sell products that are differentiated.

There are low barriers to entry of new firms.

Each firm must react to actions of other firms.

A merger between U.S. Steel and General Motors would be an example of a

vertical merger.

horizontal merger.

conglomerate merger.

conspiracy in restraint of trade.

The only firms that do not have market power are

firms in industries with low barriers to entry.

firms that do not advertise their products.

firms in perfectly competitive markets.

firms that sell identical products.