Question 20(Figure: Monopolistic Competition I) Which of the panels in the figure shows a monopolistic competitor earning a loss in the short run? A) None of the panels show a loss in the short run. B) Panel aC) Panel bD) Panel c Question 21 (Figure: Monopolistic competition I ) Which of the panels in the figure shows a monopolistic competitor earning a profile in the short run? A) Panel a B) Panel b C) Panel c D) Panels a and cQuestion 22(Figure: Monopolistic Competition I ) If the industry is experiencing short-run economic profits, what would you except to happen in the long run? A) Overall market demand would fall, causing profits to fall. B) New firms would enter, causing demand curves facing individual firms to shift to the left and profits to fall. C) Nothing would change since the short and long runs are equal in monopolistic competition. D) New firms would enter, causing demand curves facing individual firms to shift to the right and profits to fall. Question 23 (Figure: Monopolistic Competition I ) Which of the panels in the figure shows a monopolistic competitor in long run equilibrium? A) Panel a B) Panel b C) Panel c D) Panels a, b, and c.

Figure: Monopolistic Competition I (a) (b) (c) Price, Price, Price, cost, cost, cost, marginal MC marginal MC marginal MC revenue ATC revenue ATC revenue D MR MR D Quantity Quantity Quantity Reference: Ref 16-01