One difference between oligopoly firms and firms that are monopolistic competitors is that:
a. the average total cost curves of monopolistic competitors are generally u-shaped, but for oligopoly firms they are not.
b. monopolistic competitors choose a level of output such that marginal revenue equals marginal cost, but oligopoly firms generally do not.
c. monopolistic competitors face lower costs on average than do oligopoly firms.
d. the interdependence among firms is highly significant in oligopoly markets, but not in monopolistically competitive markets.
d
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In long-run equilibrium, a firm in monopolistic competition makes
A) an economic profit, but the economic profit is less than it would be if the firm was a monopoly. B) an economic profit that is higher than what it would be if the firm was a monopoly. C) zero economic profit. D) an economic profit that is the same amount as it would be if the firm was a monopoly. E) an economic profit, an economic loss, or zero economic profit.
Refer to Figure 7-4. With insurance and a third-party payer system, what price do consumers pay for medical services?
A) $25 B) $40 C) $55 D) >$55