. Under the model of monopolistic competition, a(an) ________ in the number of firms in theindustry will cause ________ to ________.A) increase; average price; decreaseB) increase; average price; increaseC) increase; average cost; decreaseD) decrease; markup; decreaseE) increase; marginal cost; decrease

If the market for products produced by firms in a monopolistically competitive industrybecomes ________, then there will be ________ firms and each firm will produce ________output and charge a ________ price.A) larger; fewer; more; higherB) larger; more; less; higherC) larger; fewer; more; lowerD) larger; more; more; lowerE) larger; more; more; higher

3. Monopolistic competition is associated withA) product differentiation.B) price-taking behavior.C) increasing returns to scale.D) high profit margins in the long run.E) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions.

When a monopolist reduces the amount of output that it sells, the price of its output: A. may increase or decrease, depending on the elasticity of demand B. stays the same C. decreases D. increases

An increase in fixed costs for a monopoly will do which of the following?Group of answer choicesDecrease the monopolist's economic profitsLead to a slight reduction in the number of units soldLower marginal revenueCause the monoplist to increase its price

Suppose a monopolist lowers the price of its good, this would cause consumers to: A. continue to buy the same amount B. buy more or less, depending on elasticity of demand C. buy more D. buy less