Suppose ABC company, which is a monopolistically competitive firm has decided to produce 30 units of output. At 30 units of output, the firm is charging a price equal to $50 per unit, has marginal revenue equal to $28, has marginal cost equal to $28, and has average total cost equal to $15. Based on this information, we can conclude Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the profits for the firm are negative. b the profit for the firm are zero. thefirmis profit maximizing. d thisfirmislikely to leave the industry in the long run. Suppose the following table shows a monopolistically competitive firm's demand curve (price and quantity demanded), and total cost curves. Calculate the profit for this firm if it operates at profit maximizing point. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $80 b $0 c $65 d 75 The following figure shows a monopolistically competitive firm's perceived demand, MR, MC and AC curves. Calculate the firm's profits if it operates at profit maximizing point. 140 12333 90 56.67 100 13333 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $5,000 MC 140 ATC 123.33 90 Demand 56.67 -MIR 100 133.33 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $5,000 b SO C $8,887.78 d $6238Suppose the following table shows a monopolistically competitive firm's demand curve (price and quantity demanded), and total cost curves. For this firm, what is its efficient scale? 140 12333 90 5667 100 133.33 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 100 units b less than 100 units 140 12333 90 5667 100 133.33 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 100 units b less than 100 units C between 100 and 133.33 units d more than 133.33 units Due to free entry and exit, firms in a perfectly competitive market in the long run will end up producing Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a at the bottom of the AC curve. b on the downward sloping part of the AC curve. c on the upward sloping part of the AC curve. d at the bottom of the MC curve.Which of the following strategies can act like a form of cooperation in a cartel like oligopoly setting? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a always match other cartel firms' price increases, but don't match price cuts b always match other cartel firms' price cuts, but don't match price increases immediately match price increases d legally enforceable agreements Suppose US and China are the only corn producers in the world. They know that if they cooperated and produced less, they can raise the price of corn and can each earn $150. If they compete with each other and work independently, they will each earn $100. If only one lowers the output, and the other does not, then the one who lowers output will only earn $20, while the other will earn $200. The following table shows their decisions and their respective payoffs. What is the outcome if they both follow their dominant strategy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Both will cooperate. b China will cheat while US will cooperate. C Both will cheat. d USwill cheat while China will cooperate. In an oligopoly, as the number of firms increases, Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a theoutput effect decreases. b the price effect increases. the price effect decreases. d the output effect increases. Which of the following correctly defines the dominant strategy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a It makes every player better off. b It increases the total payoff for the player. C It is the best choice for the player, regardless of what the other player does. d It will result in worst outcome for the player.Out of the three market structures - perfectly competitive, monopoly and monopolistically competitive - which of these experience zero economic profitin the long run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Perfectly competitive b Perfectly competitive and monopolistically competitive only Monopoly only d Monopoly and monopolistically competitive only If monopolistically competitive firms experience positive profits, which of the following is expected to happen? i) the number of firms in the market increases. ii) each firm experiences a decrease in demand for its product. iii) each firm experiences an upward shift in its average total cost curve. iv) each firm experiences a rightward shift of its marginal revenue curve. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (i)only b (i) and (ii) only (i) and (iii) only d (i), (i), and (iii) The following shows a monopolistically competitive firm. Based on this figure, we can conclude that Price MC 160 140 ATC 123.33 90 Demand 56.67 MR 100 133.33 154.92 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the firm is currently operating in the short run equilibrium and not in the long run equilibrium. b the firm is currently operating in the long run equilibrium and not in the short run equilibrium.160 140 123.33 90 56.67 100 13333 15492 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a thefirmis currently operating in the short run equilibrium and not in the long run equilibrium. b thefirmis currently operating in the long run equilibrium and not in the short run equilibrium, thefirmis currently operating in the short run equilibrium and in the long run equilibrium. d thefirmis currently operating neither in the short run equilibrium nor in the long run equilibrium