A Monopolistically Competitive Firm Has the Following Cost Structure

question 168

Multiple Choice

A monopolistically competitive firm has the following cost structure:

The firm faces the following demand curve:

If the government forces this firm to produce at its efficient scale,it will

• A) produce 3 units and make $9.
• B) produce 4 units and make $6.
• C) produce 5 units and lose $5.
• D) produce 7 units and lose $49.

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Definitions:

Imprinting

(1) The expression of a gene based on its parental origin; also called genomic imprinting or parental imprinting. (2) A type of learning by which a young bird or mammal forms a strong social attachment to an individual (usually a parent) or object within a few hours after hatching or birth.

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Environmental Stimulus

A change in the environment that elicits a response from an organism.

Sign Stimulus

Any stimulus that elicits a fixed action pattern in an animal.