For a monopolistically competitive firm
A. price is greater than marginal revenue at all levels of output except for the first unit.
B. price equals marginal revenue at all levels of output.
C. price is less than marginal revenue at all levels of output.
D. the demand curve is perfectly inelastic and marginal revenue is zero.
Answer: A
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Competitive firms earn zero profit in the long run when
A) entry is completely free. B) entry is limited. C) Both A and B. D) Neither A nor B.
When there's uncertainty as to the length of a game
A) cooperation still does not occur, because cooperation unravels at the beginning of the game. B) cooperation can potentially occur if trigger strategies are adopted. C) firms will cooperate because they treat the game as one that is infinitely repeated. D) firms will randomly pick among the Nash equilibria.