If a monopolistically competitive firm uses advertising to convince buyers that its product is more differentiated (i.e. better quality or value) than those sold by its competitors, which of the following occurs?

		The demand for its product increases.
		The firm gains more market power to control its price.
		The demand for its product becomes less elastic.
		All of the above.

Which of the following types of market structures has a large number of firms that sell similar, but slightly differentiated products?

		Monopolistic competition.
		Monopoly.
		Oligopoly.
		Perfect competition.

A club good such as Netflix subscriptions is:

		Rival, but non-excludable
		Non-rival and non-excludable
		Non-rival, but excludable
		Rival and excludable

Suppose a perfectly competitive firm sells 625 units per week. The average cost of producing each unit is $100. If each unit is sold for a price of $75, what will be the total profit or loss for the firm?

	32,400
	-15,625
	-32,400
	15,625