1-In the figure, the firm is a monopolistically competitive firm. In the long run, its economic
profit will be
B.some amount that cannot be determined without more information
.C.between zero and $50 per day.
D.greater than $50.0 per day
2-in the figure, the firm’s economic
A.profit will be greater than $30.01 per day.
B.loss will be $30 or less per day.
C.loss will be greater than $30 per day.
D.profit will be between $0 and $30 per day
he below graph shows the monopolistically competitive firm in long-run equilibrium. The difference between Q1 and Q2 is called ______ and the reason the firm will not produce at Q1 is ______.
A.Limited capacity; the firm cannot maintain Q1 level of output in long-run
B.Nash level of capacity; Q1 level of output is a short-run equilibrium
C.Optimal capacity; the firm does not have enough capacity to produce at this level
D.Excess capacity; expanding beyond Q2 lowers profits
Price and costs (dollars per unit)
Quantity (units per day)