QUESTION 12 In the short run, monopolistically competitive firms can maximize pr

Question

QUESTION 12 In the short run, monopolistically competitive firms can maximize profits by: acting like a monopolist. O acting like a perfectly competitive firm. O playing strategic games like an oligopolist. None of these statements is true. QUESTION 13 In the short run, monopolistically competitive firms: can earn positive economic profits by acting like a monopolist. Ocan earn positive economic profits by acting like a perfectly competitive firm. will earn zero economic profits by acting like a monopolist. will earn zero economic profits by acting like a perfectly competitive firm. QUESTION 14 In the short run, product differentiation enables firms in monopolistically competitive markets to: O produce a good for which there are no exact substitutes. standardize goods. O collude. O act like perfectly competitive firms.

Explanation / Answer

12.

Since the short-run profit-maximising condition of the monopolist and monopolistic competitive firm is ;

MR=MC

Hence the monopolistic competitive firm can maximise its profit in short-run by acting like a monopolist.

Hence option first is the correct answer.

Option first; acting like a monopolist.

13.

Since the short-run profit-maximising condition of the monopolist and monopolistic competitive firm is ;

MR=MC

So the monopolistic competitive firm acting like a monopolist can earn positive economic profit in the short-run.

Hence option first is the correct answer.

Option first; can earn positive economic profits by acting like a monopolist.

14.

Since the firms in the monopolistic competion produces the differentiated goods based on size, quality and shape etc so that the firm could control over the price by producing the standardized products.

Hence it can be said that in the short-run product differentiation enables firms in monopolistcally competitive markets to standardized goods.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.