Monopolistically competitive industries have significant barriers to entry and exit

Refer to Figure 7-2. The efficient equilibrium price is

A) $60. B) $50. C) $40. D) < $40.

Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that

a. as more of a product is consumed, consumers will value additional units less. b. as more of a product is consumed, consumers will value additional units more. c. the value of additional units of the good is unrelated to the amount consumed. d. the cost of production for a good generally rises as more of it is produced.