These are the cost and revenue curves associated with a monopolistically competitive firm:

For each of the following characteristics, say whether it describes a monopoly firm,a monopolistically competitive firm, both, or neither: a) faces a downward-sloping demand curve b) has marginal revenue less than price c) faces the entry of new firms selling similar products d) earns economic profit in the long run e) equates marginal revenue and marginal cost f) produces the socially efficient quantity of output.

Because competitive firms face a downward-sloping demand curve, their marginal revenue curve lies the demand curve. (Enter one word in each blank.)

The market demand curve for a monopolist is typically: A. horizontal B. unit elastic C. perfectly elastic at market price D. downward-sloping

Which of the following describes a difference between the marginal revenue and demand curves of a perfectly competitive firm and a monopolistically competitive firm?Group of answer choicesThe perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies above its demand curve.The perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies below its demand curve.The monopolistically competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a perfectly competitive firm lies below its demand curve.The marginal revenue curve of a monopolistically competitive firm lies below its demand curve; the marginal revenue curve of a perfectly competitive firm lies above its demand curve.

When a profit-maximising firm in a monopolistically competitive market is producing the break-even quantity: A. it will be earning economic profits B. its demand curve will be tangent to its average total cost curve C. its demand curve can be above, below or be tangent to its average total cost curve D. its marginal revenue will exceed marginal cost