Question :
41) Which of the following happens when new firms enter : 1377533
41) Which of the following happens when new firms enter a monopolistically competitive market structure?
A) The existing firms face higher demand.
B) The existing firms face relatively inelastic demand curves.
C) The existing firms earn higher profits.
D) The existing firms earn lower profits.
42) A monopolistically competitive firm ________ in the long run.
A) earns low but positive economic profit
B) earns high economic profit
C) earns zero economic profit
D) incurs losses
43) The exit of firms from a monopolistically competitive market structure causes the demand curves facing the existing sellers to shift ________ and to become ________.
A) leftward; flatter
B) rightward; flatter
C) leftward; steeper
D) rightward; steeper
44) Which of the following is true of long-run equilibrium price in a monopolistically competitive market?
A) It is equal to average total cost.
B) It is less than average total cost.
C) It is higher than average total cost.
D) It is lower than marginal cost.
45) Which of the following is a difference between a monopolistically competitive market and a perfectly competitive market in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run while firms in a perfectly competitive market earn positive economic profits in the long run.
B) Firms in a monopolistically competitive market earn zero economic profit in the long run while firms in a perfectly competitive market incur losses in the long run.
C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
46) Which of the following is true?
A) The price charged by a monopolistically competitive firm is equal to the price charged by a perfectly competitive firm in the long run.
B) The price charged by each firm in a monopolistically competitive market is equal in the long run.
C) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a firm in a perfectly competitive market in the long run.
D) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a monopolist in the long run.
47) Which of the following is a difference between a monopolistically competitive market and a monopoly in the long run?
A) Firms in a monopolistically competitive market earn zero economic profit in the long run while a monopolist usually earns positive economic profit in the long run.
B) Firms in a monopolistically competitive market earn zero economic profit in the long run while a monopolist incurs losses in the long run.
C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run while a monopolist charges a price equal to marginal cost in the long run.
D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run while a monopolist charges a price equal to marginal cost in the long run.
48) The equilibrium output produced by a monopolistic competitor in the long run after the entry of new firms is ________.
A) higher than the equilibrium output produced by the firm before the entry of new firms
B) lower than the equilibrium output produced by the firm before the entry of new firms
C) higher than the equilibrium output produced by a perfectly competitive firm in the long run
D) equal to the equilibrium output produced by the firm before the entry of new firms
49) The equilibrium price charged by a monopolistic competitor in the long run after the entry of new firms is ________.
A) higher than the equilibrium price charged by the firm before the entry of new firms
B) lower than the equilibrium price charged by the firm before the entry of new firms
C) lower than the equilibrium price charged by a perfectly competitive firm in the long run
D) equal to the equilibrium price charged by the firm before the entry of new firms
50) The profit earned by a monopolistic competitor after the entry of new firms is ________.
A) higher than the profit earned by the firm before the entry of new firms
B) lower than the profit earned by the firm before the entry of new firms
C) equal to the profit earned by a monopolist in the long run
D) higher than the profit earned by a perfect competitor in the long run
or Waypoint 
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