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A monopolistic firm

• will never sell a product whose demand is inelastic at the quantity sold.

• can sell as much as it wants for any price it determines in the market.

• cannot determine the price, which is determined by consumer demand.

• cannot sell additional quantity unless it raises the price on each unit.

• will always earn a profit in the long run.

Monopolistic competition is associated with

• product differentiation.

• price-taking behavior.

• explicit consideration at the firm level of the strategic impact of other firms' pricing decisions.

• high profit margins in the long run.

• increasing returns to scale.

Modeling trade in imperfectly competitive industries is problematic because

• there is no single generally accepted model of behavior by imperfectly competitive firms.

• there are no models of imperfectly competitive behavior.

• it is difficult to find an imperfectly competitive firm in the real world.

• collusion among imperfectly competitive firms makes usable data rare.

• there is only a single model of imperfect competition (monopoly) but imperfect competition can take many forms in the real world.

The simultaneous export and import of widgets by the United States is an example of

• intra-industry trade.

• increasing returns to scale.

• imperfect competition.

• inter-industry trade.

• the effect of a monopoly on international trade.

When a country both exports and imports a type of commodity, the country is engaged in

• intra-industry trade.

• increasing returns to scale.

• imperfect competition.

• inter-industry trade.

• an attempt to monopolize the relevant industry.

If there are a large number of firms in a monopolistically competitive industry,

• long-run profit will be equal to zero.

• the country in which the firms are located can be expected to export the goods they produce.

• there will be barriers to entry that prevent addition firms from entering the industry.

• the firms will converge production on a standardized product.

• there will be a small number of firms that are very large and the rest will be very small.

In an industry where firms experience internal scale economies, the long-run cost of production will depend on

• the size of the market.

• the size of the labor force.

• whether the country engages in intra-industry trade.

• individual firms' fixed costs.

• whether the country engages in inter-industry trade

If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale.

• long-run; decrease; economies

• short-run; decrease; economies

• long-run; decrease; diseconomies

• short-run; decrease; diseconomies

• long-run; increase; economies

If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale.

• long-run; increase; diseconomies

• short-run; decrease; economies

• long-run; decrease; diseconomies

• short-run; decrease; diseconomies

• long-run; increase; economies

If a firm that uses a production process that yields economies of scale charges a price equal to ________, then profit will be ________.

• marginal cost; negative

• marginal revenue; maximized

• marginal cost; maximized

• marginal revenue; positive

• marginal cost; positive