Blackboard VCU eServices Free Stock Charts... Course Home The best example of a monopolistically competitive firm is I point O O Dominion Virginia Power Microsoft O a restaurant in an urban area. O a hog farmer. O a gasoline station at an isolated exit on an Interstate highway. Monopolistically competitive firms maximize profit in the long when point O price equals both marginal revenue and average total cost. O price is equal to both marginal cost and average total cost. O marginal revenue is equal to marginal cost and price is equal to average total cost. O marginal revenue is equal to price and marginal cost is equal to average total cost. point What is the positive externality if consumers are willing to pay $10 and the social value is $25? O $0.40 $2.50 OOOOOO Distinguishing features of both perfect and monopolistic competition are 1 point O product homogeneity and barriers to entry. O small numbers of sellers and free entry and exit. O large numbers of sellers and barriers to entry. large numbers of sellers and free entry and exit. O product differentiation and barriers to entry. A monopolistically competitive firm observes a downward-sloping demand 1 point curve because O only a few firms are in the market. O firms produce a nearly identical product. O firms produce a differentiated product. O many firms are in the market. Which of the following would be most likely to have monopoly power? 1 point O an online toy store O a small chain of fast-food restaurants O a local water and sewer company O a McDonald's franchise in a city O a national package delivery service ks People Tab Window Help x + IpQLScad2EhzQ-yXkV241q/smsA8XqQHT-3108UQ2ChQ8O2YZKUfQ/viewform Drive VCU Blackboard N VCU eServices Free Stock Charts... Course Home O a local water and sewer company O a McDonald's franchise in a city O a national package delivery service Suppose that PF Pharmaceuticals has a patent for a new drug that will cure 1 point heart failure. Which of the following reasons describes the fundamental barrier to entry for this industry? O declining average total cost O government regulation O monopoly resources O the production process excess capacity point What is the social cost if the negative externality is $10 and the private marginal cost is $25? $0.40 $2.50 $10 O $15 O $25 O $250 Which of these is the best example of a barrier to entry? 1 point OLISI Which of these is the best example of a barrier to entry? 1 point O Miguel offers free portrait sketches on Sunday afternoons as a form of advertising. O Ahmed includes a bonus gift with every photo he sells. O Florence charges a lower price than anyone else for her photography sessions. O Nicholas charges a higher price than anyone else for tennis lessons. O Kevin obtains a copyright for the new app he invented. Which of the following market structures require that price is greater than 1 point marginal cost as a profit-maximizing condition? O monopoly and perfect competition O monopolistic competition and perfect competition O monopoly, monopolistic competition, and perfect competition O monopoly and monopolistic competition What allows economic profit for a monopoly to persist in the long run? 1 point O Monopolies receive government subsidies. Price exceeds marginal revenue because the monopoly must reduce price in order to sell more. The monopoly can charge whatever price it wants because it is the only firm selling the product. O Barriers to entry prevent new firms from competing with the monopoly. Government command-and-control 1 point can reduce pollution but not to the optimal level and reduces pollution inefficiently can attain the optimal level of pollution but reduces pollution inefficiently can reduce pollution but not to the optimal level and reduces pollution efficiently. can attain the optimal level of pollution and reduces pollution efficiently What happens when a monopolist increases the price of its good? 1 point O Consumers may buy more or less, depending on the price elasticity of demand. Consumers buy the same amount. Consumers buy less. Consumers quit buying the good. Consumers buy more. O