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Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

Which of the below graphs represent the cost curves for an informational product?

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

When the qualities of a good are relatively easy to assess in advance of their purchase, the good is known as

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

A firm the produces an information product will

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

In the long run, monopolistically competitive firms

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

In comparing the long-run equilibrium of prefect competition and monopolistic competition, which of the following is true?

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

The fact that a monopolistically competitive firm does not produce at the minimum ATC can be viewed as the cost of generating

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

The greater the monopolistically competitive firm’s success at product differentiation the lower is (are) the firm’s

 

Question Score: 1 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

The downward slope of the demand curve of a monopolistically competitive firm implies that the firm has

 

Question Score: 0.57 of 1 pt                                                                        Test Score: 85.71% (8.57 of 10 pts)

 

 When a firm produces an information product the initial or fixed costs are___.

 

Consequently the average fixed cost and average total cost___ as the volume of output increases.

 

Since most of the costs are the initial fixed costs of development, once the product is developed, the___ cost of producing more units of the product are typically low and ____.

 

In this case, the, the low and constant marginal cost is ___ the average cost.

 

If the firm set the price, or average revenue, of the product equal to the marginal cost, the firm would have ____ since the marginal cost is ___ the average cost.

 

 

 

 

 

Question Score: 0 of 1 pt                                                                              Test Score: 85.71% (8.57 of 10 pts)

 

The monopolistically competitive firm in the diagram is

 

 

 

 

 

 

 

 

 

 

 

 

 

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