WorksheetsMonopolistic Competition (IB)
Total questions: 17
Worksheet time: 34mins
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The monopolistically competitive firm's profit-maximising price in the short run will be
0a
0b
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0d
The monopolistically competitive firm's profit-maximising output in the short run will be
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In the short run, monopolistically competitive firm will make
a per unit loss of cd
a per unit loss of bd
a per unit profit of bc
a per unit profit of ad
What will occur in the long run, given the situation in the diagram represents a monopolistically competitive firm?
Firms wills leave the industry, thereby shifting the demand curve out
Firms will enter the industry, thereby shifting the demand curve in
Average costs will fall as more firms enter the industry
Output will increase due to the intensity of the competition
