Market Structure MC Part 1

Which of the following is not a key characteristics of Monopolistic Competitive Firms?

• Low Barriers to entry and exit

• Many firms with significant market share

• Differentiated Products

• Low Market Power

Which of the following is an accurate description of the demand and revenue curves of MC firm?

• It is upward sloping.

• It is steeper in gradient than a monopoly curve

• It faces a highly elastic demand curve compared to monopolist.

• It is not responsive to price change.

Production of the goods is always determined by:

• MC>MR

• MR>MC

• MC=M

• None of the above

MC firms can earn what type of profits in the short run?

• Normal Profits

• Subnormal Profits

• Supernormal Profits

• All of the above

MC firms can earn what type of profits in the long run?

• Normal Profits

• Subnormal Profits

• Supernormal Profits

• All of the above