Consider 2 identical firms that face the same costs of production. One firm operates in a perfectly competitive market while the other firm operates in a monopolistically competitive market; both markets have the same total demand for a good. Which of the following statements apply are true, or apply to both types of firms? [Tick all that apply] [Reminder: selecting wrong answers means you lose points. Choose carefully!] Group of answer choices In the short run, both firms supply the same profit-maximising quantity. Both firms face a downward-sloping demand curve for their good. Both firms expect to earn zero economic profits in the long run. Both firms are price-takers. If the firm makes positive economic profits, new firms will enter the market which drives profits down to zero. If there are economic profits, new firms enter the market leading to a decrease in demand for the existing firms.

Imagine two firms with identical cost structures that do not exhibit economies of scale at high levels of production. One is competing in a perfectly competitive market and one is a monopoly. In the long run which of the following is true?Group of answer choicesThe monopoly will charge a higher price than the perfectly competitive firmThe monopoly and the perfectly competitive firm will produce the same quantityThe monopoly and the perfectly competitive firm will charge the same priceThe monopoly will sell a higher quantity than the perfectly competitive firm

Choose the correct statement from the options given below:The demand curve for an individual supplier in a perfectly competitive market is considered to be downward sloping, whereas the demand curve for a monopoly is considered to be upward sloping.The demand curve for both an individual supplier in a perfectly competitive market and a monopolist is considered to be downward sloping.The demand curve for an individual supplier in a perfectly competitive market is considered to be flat, whereas the demand curve for a monopolist is considered to be downward sloping.The demand curve for an individual supplier in a perfectly competitive market is considered to be flat, whereas the demand curve for a monopoly is considered to be upward sloping.

Which of the following statement(s) are true?   [Tick all that apply][Note: selecting a wrong answer means you lose points again. So choose carefully!]Group of answer choicesA single-price monopolist producing in the inelastic part of the demand curve can increase its total revenue by raising its price.A single-price monopolist that maximizes profits never produces in the elastic part of the demand curveThe total revenue of a single-price monopolist is maximized when demand is perfectly elastic.A single-price monopolist always generates a deadweight lossA single-price monopolist has a supply curve which shows the profit-maximising quantity supplied at a range of prices.

All firms that are profit-maximizing, regardless of whether the demand curve is horizontal or downward-sloping, will produce where which of the following is true?Group of answer choicesMarginal cost is equal to marginal revenueMarginal revenue is greater than priceDemand is elastic along the whole curveMarginal cost is equal to price

Which of the following is true under conditions of perfect competition?Multiple ChoiceThere are differentiated products.The market demand curve is perfectly elastic.No single firm can influence the market price.Each individual firm has the ability to set its own price.