Question : 51) Refer to Figure 11-2. In diagram D, the profit-maximizing : 1384251

51) Refer to Figure 11-2. In diagram D, the profit-maximizing output for a single-price monopolist occurs where

A) P = MR.

B) P > AR.

C) P > MC.

D) P = MC.

E) P < MC. 52) Refer to Figure 11-2. In diagram B, at the short-run profit-maximizing position, the firm A) is making profits. B) should be shut down. C) is losing money. D) should raise its price. E) should increase output. 53) Refer to Figure 11-2. Diagram C depicts a typical firm in long-run equilibrium in A) a perfectly competitive industry. B) monopolistic industry. C) monopolistically competitive industry. D) oligopolistic industry. E) an imperfectly competitive industry 54) Refer to Figure 11-2. Diagram D depicts the only possible long-run equilibrium for a typical firm in A) a perfectly competitive industry. B) a monopolistic industry. C) a monopolistically competitive industry. D) an oligopolistic industry. E) None of the above - it is not a long-run equilibrium. 55) Refer to Figure 11-2. The position of a typical firm when the industry is in long-run equilibrium with free entry and exit and product differentiation is exhibited in diagram A) A. B) B. C) C. D) D. 56) In long-run equilibrium, a monopolistically competitive industry is characterized by A) positive profits for all firms in the industry. B) a perfectly elastic demand curve facing each firm in the industry. C) zero profits for all firms in the industry. D) positive profits as a result of barriers to entry. E) all firms operating at the minimum point of their long-run average cost curves. 57) When a monopolistically competitive industry is in long-run equilibrium, each firm will be operating where price is A) greater than average total cost but equal to marginal cost. B) greater than average total cost and greater than marginal cost. C) equal to average total cost and to marginal cost. D) greater than marginal cost but equal to average total cost. E) less than marginal cost and equal to average total cost. 58) When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between A) price and marginal cost. B) the output at which ATC is at a minimum and the output at which price equals marginal cost. C) zero and the output at which the demand curve is tangent to the ATC curve. D) price and average cost. E) the output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost. 59) In the long run, a monopolistically competitive firm will A) lose money. B) operate where price = marginal cost. C) earn positive economic profits. D) produce where price exceeds the minimum of average costs. E) produce the output where average costs are minimized. 60) Refer to Figure 11-3. In the long run, a monopolistically competitive firm will A) produce Q2 at Price P1. B) produce Q1 at Price P2. C) produce Q1 at Price P1. D) produce Q2 at Price P2. E) produce the output where AC is at its minimum.