Question 1
Refer to the information provided in Figure 15.3 below to answer the question(s) that follow.
Refer to Figure 15.3. In the long run, this monopolistic competitive firm should expect
◦ nothing to change; it will continue to make a profit.
◦ firms to exit the industry and profits to increase.
◦ firms to enter the industry until all economic profits are eliminated.
◦ firms to enter the industry and profits to increase.
Question 2
Refer to the information provided in Figure 15.3 below to answer the question(s) that follow.
Refer to Figure 15.3. Gwen's Country Curtains is currently manufacturing and selling 1,000 pairs of curtains per month. The ________ for this company is $80,000.
◦ total cost
◦ profit
◦ total revenue
◦ fixed cost
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